AMT AND NOL

[Marie]

Client has a large farming NOL, now it shows AMT due.  Is this correct?  Are there any preference items I might be missing?

[Marie]

I need help understanding this.  Please share some knowledge with me

[Lee B]

Not enough information to help you, except to suggest that you read the instructions for Form 6251

[Marie]

i have read.  farmer has a 181000 nol, in 2023 his farm had a profit of 150000

now amt pops up and he owes 7000 in amt.  

does that sound correct?

[Lee B]

Generally speaking, an NOL is limited to 80% of taxable income,

In theory he could own AMT but without working through the 6251 step by step who knows?

 

[BulldogTom]

1 hour ago, Marie said:

i have read.  farmer has a 181000 nol, in 2023 his farm had a profit of 150000

now amt pops up and he owes 7000 in amt.  

does that sound correct?

I think you need to look at what the AMT NOLs have been over the years to see if they are available to be used against current year income.   I would need to do some refreshing of my own since it has been a while since I have never done a farm NOL and I am speaking from my faulty memory.   Don't take this as gospel, just a thought.

Tom
Longview, TX