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Date:   Thu, 14 Dec 2006
From:   Dan

I'm confused about the AMT credit. I believe I should have an AMT credit carryforward from 2005 based on some ISOs we exercised in 2005. But the return shows no credit. Perhaps I should amend last year's return? Are there situations where it would be possible to pay a lot of AMT due to ISO exercise, but still not have the credit available for later years?

Answer

Date:   Fri, 29 Dec 2006

Hello Dan,

The credit will be determined on Form 8801, Credit for Prior Year Minimum Tax, with your 2006 income tax return. You can get a copy of the form at the IRS web site, www.irs.gov.

Good luck!

Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options - Executive Tax and Financial Planning Strategies.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained in this answer was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.