AMT tax credit strategies
February 27, 2005 7:09 PM Subscribe
A few year ago I had to pay AMT on some ISO stock. Since I've sold it for far less than the amount of AMT tax that I paid in, I've got a large AMT tax credit hanging out there. Are there any strategies that anyone can suggest to get some of this money back?
For those that want a more detailed explanation, here goes. With ISOs, I triggered AMT... or Alternative Minimum Tax. With this different tax system, I had to prepay capital gains tax on the stock that I received with stock options. I paid tax on these shares at $48/share.... I sold them for $4 a share on a basis of $3. So, there's about $12/share in tax credit hanging out there.
The problem is this. Because it was on Capital Gains, I can only take the credit against stock gains. At the rate I'm going, its going to take me 20 years to get the credit back.
So, any strategies you can suggest... any ideas that your tax advisor might have suggested, would be greatly appreciated.