Amtnol

[equinecpa]

I've just finished doing a 5 year NOL carryback for a farm client (2007 to 2002) . Their 2007 loss is larger than their 2002 income so I have some loss remaining to apply to 2003.

In 2003 AMT may be a factor so I'm trying to figure the AMT NOL. I was able to compute the 2007 AMT NOL but I need to calculate how much was used up in 2002.

Is the amount that is used up the AMT Taxable income before the NOL loss is applied?

eg:

2002 AMT income before NOL $300,000
AMT NOL carryback $350,000

Is the AMT carryover to 2003:

a) $350K-$300 =$50,000
or
b) 90% x 300=$270, 350-270=$80,000 (since the usable amount of the NOL is only 90%)

I'm thinking a) but would like to confirm with the wise minds here!

Thanks

Carolyn

[equinecpa]

Amt Nol?

Anyone have any experience with these?

[erchess]

Why don't you private message

one or more of the other heavy hitters such as Bees, Brad, NYEA, or Snags? I have never dealt with this issue and for fear of misleading you I don't want to state an opinion. I am however following this thread with great interest because at some point the knowledge could pay dividends

[JG EA]

This is something that I always have to look up and work at one year at a time. NATP has some worksheets to work through what the AMT NOL is and what the carryover/carryback amount is. Also the form 6251 has several paragraphs (line 11 and line 28 for example) that discuss what is to be done.

Basically you have to enter the regular NOL, line 11 on the 6251 of the year you are working on and then refigure the NOL, line 28 for that year according to AMT rules.

Sorry I can't be of more help but wanted to post something.

When I asked for help on the board the general feeling was that I could have some AMT NOL to carry, but I couldn't find that post to show it to you. In that case there were huge AMT depreciation amounts to add back in and it did no good to the year I was trying to carry it back to, so I just had to carry it forward.


I also read this each time to straighten me out. Found it on the internet when someone wanted a worksheet and this fellow didn't have one.

You compute AMT NOL like regular tax NOL, except items that don't apply for AMT will be excluded and items that apply for AMT will be added. For example, income will be added for an ISO exercise. Deductions for taxes, miscellaneous itemized deductions, the standard deduction and personal exemption allowances are eliminated for AMT. With these modifications, you can use the regular NOL worksheet. (Some tax return preparation software generates an AMT NOL schedule.) Remember the NOL deduction is limited for AMT; see Form 6251.