AMT recapture

[WITAXLADY]

so this year - no AMT but what about the AMT from prior years - whenever I do a 8801 - it always shows -0- credit.. shouldn't they be able to get a credit for the AMT paid earlier?

What am I putting down wrong?

thx

[DANRVAN]

You apply the credit to the amount reg tax exceeds AMT....if reg tax is 12,000 and AMT is 10,000 then credit = 2,000.  If zero AMT then zero credit.

 

[DANRVAN]

8 hours ago, DANRVAN said:

You apply the credit to the amount reg tax exceeds AMT....if reg tax is 12,000 and AMT is 10,000 then credit = 2,000.  If zero AMT then zero credit.

 

Please disregard that last part, I made an edit that did not get saved.  It should flow through the form.  If the credit c/f is on line 21, reg tax on line 22, and AMT of zero on line 23, credit should flow to line 25 of 8801 and to schedule 3 of 1040.

 

[DANRVAN]

On 3/11/2019 at 8:14 PM, WITAXLADY said:

so this year - no AMT but what about the AMT from prior years - whenever I do a 8801 - it always shows -0- credit.. shouldn't they be able to get a credit for the AMT paid earlier?

Keep in mind the credit is only available for deferral items, so not all prior AMT is a available for the credit.

 

[Abby Normal]

I have never seen an 8801 credit because almost all of the AMT differences are permanently disallowed items like taxes and misc itemized.

[WITAXLADY]

thank you - what would be deferral items?

Most of my AMT's came from 2106 deductions...

d

[DANRVAN]

Most AMT comes from exclusion items, meaning they are deductions not allowed.  On the other hand, deferral items are timing differences like depreciation where you will eventually get the deduction.

[WITAXLADY]

thank you - still clear as mud - examples?

[JohnH]

I'm not presenting this s authoritative or even correct, but it's a possible source of info:

http://www.amtadvisor.com/Minimum_Tax_Credit.html

I discovered it on a highly reliable investing site which includes lots of people subject to the AMT, so I saved it for future reference.

[WITAXLADY]

thank you!! perfect

D

I feel dumber and dumber this year - maybe it is time to rnr!

my clients are getting too successful!