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Subject:   Line 9 of AMT form 6251
Date:   Tue, 12 Feb 2002
From:   Carol

Dear Mr. Gray,

I'm confused on what applies for line 9 of form 6251. If I have a large capital loss (which is all from sale of stocks this year and carryover from prior year losses) on Schedule D, and I reported a $3000 loss on Form 1040, does that mean I can enter the remaining loss on Line 9? If so, that would offset my ISOs.

Sincerely,

Carol

Answer

Date:   27 February 2002

Hello Carol,

You should prepare Schedule D on both an AMT basis and a regular tax basis. The difference in the gain or loss is entered at line 9. The $3,000 capital loss limitation applies for both regular tax and alternative minimum tax. See the instruction for Form 6251, where this is highlighted this year.

Good luck!

Mike Gray

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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.