farm sale, nol,amt

[Marie]

My clients have been taking NOL's over the past 15 years. Now they sold their farm, received money in all one year. AMT has come up, adding the NOL's into the income. Granted, it's lower that if there had been no NOL's, but I'm stuck on the alternative tax net operation loss deduction. I gather that would be a subtraction to get back some of my NOL's I'm losing on the AMT form. I haven't been figuring AMT NOL's for those past years. I'm not sure I know how. I've read the instructions and am just as confused as before. Can anybody help me?

[Marie]

PLease, I need some imput. Does the alt minumum NOL add back in to take away the reg NOL I had to add in. What is the difference between a regular NOL and an AMT NOL?

[Gail in Virginia]

I don't have a lot of experience with this, but sine no one else has responded I will say that the difference between a regular NOL and an AMT NOL is any adjusments that have to be made for AMT purposes. For example, if the NOL includes depreciation at a faster rate than allowed for AMT purposes, you would have to add back the difference in depreciation in determining the AMT NOL. There are other adjustments possible, but that is probably the most common.