How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask jgordosea Your Own Question

jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3038
Experience:  I've prepared all types of taxes since 1987.
3653323
Type Your Tax Question Here...
jgordosea is online now
A new question is answered every 9 seconds

How do I calculate line 27, Alternative tax net operating loss

Resolved Question:

How do I calculate line 27, Alternative tax net operating loss deduction on Form 6251. I need a formula with definitions for each amount included in the calculation. The instructions do not give enough information.
Submitted: 6 years ago.
Category: Tax
Expert:  jgordosea replied 6 years ago.

Greetings,

 

The net operating loss for alternative minimum tax purposes (AMTNOL) is computed based on the net operating loss for regular tax purposes with adjustments.

 

From Alternative Minimum Tax - For Individuals :

The AMTNOL deduction is defined in IRC section 56(d). It is computed the same as the NOL for regular tax purposes with two modifications. IRC section 56(d)(1)(B). The loss is computed by adjusting the taxable income per the adjustment amounts of IRC section 56 and IRC section 58 and reduced by the sum of tax preference items per IRC section 57. IRC section 56(d)(2)(A). However, any item of tax preference will be taken into consideration only to the extent that the item increased the amount of the NOL for the taxable year under IRC section 172(c). IRC section 56(d)(2).

Regular Tax NOL + AMT depreciation Adjustment + Preference Items =AMTNOL

That is, the AMTNOL is computed from Regular Tax NOL in a manner similar to the computation of AMT taxable income from regular taxable income except that preference items that correspond to income that is not a part of the Regular Tax NOL are not included in the computation. See A Primer on Individual NOLs for details.

As you may know, the AMTNOL is limited to 90% of alternative minimum taxable income in the year of use; see Sec. 56(d).

I hope this helps for computing the AMTNOL.

Best wishes.

jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3038
Experience: I've prepared all types of taxes since 1987.
jgordosea and 5 other Tax Specialists are ready to help you
Customer: replied 6 years ago.

What are the specific preference items included in the AMTNOL calculation?

 

Thank you!

Expert:  jgordosea replied 6 years ago.

Hello again,

 

Please see US CODE: Title 26 § 56. Adjustments in computing alternative minimum taxable income and US CODE: Title 26,57. Items of tax preference

 

Sorry I do not have another list of preference items for AMTNOL than the sections.

 

Please remember any item of tax preference will be taken into consideration only to the extent that the item increased the amount of the NOL for the taxable year. That is, personal use or nonbusiness items that are not part of the NOL would not have to be adjusted when figuring the AMTNOL.

 

Whether a particular preference item does or does not increase the amount of an NOL will depend on the facts of personal use or business use for that taxpayer; so I am not certain that any of the preference items for regular tax can be eliminated in all cases when computing the AMTNOL.

 

I hope this helps even though there is no list other than the list of preference items for regular tax purposes that may need to be adjustments for AMTNOL.

 

Best regards.

 

 

jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3038
Experience: I've prepared all types of taxes since 1987.
jgordosea and 5 other Tax Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
< Last | Next >
  • http://ww2.justanswer.com/uploads/KU/KUMI95/2013-9-30_195031_kumar.64x64.jpg Wallstreet Esq.'s Avatar

    Wallstreet Esq.

    Tax Attorney

    Satisfied Customers:

    570
    10 years experience
  • http://ww2.justanswer.com/uploads/CU/Cuttinggirl/2011-10-29_03719_wcrop2.64x64.jpg Wendy Reed's Avatar

    Wendy Reed

    Enrolled Agent

    Satisfied Customers:

    3052
    15+ years tax preparation and tax advice.
  • http://ww2.justanswer.com/uploads/CATax/2009-08-04_204548_Mark.jpg Mark D's Avatar

    Mark D

    Enrolled Agent

    Satisfied Customers:

    985
    MBA, EA, Specializing in Business and Individual Tax Returns and Issues
  • http://ww2.justanswer.com/uploads/IN/insearchoftheanswer/2013-8-16_0233_attorney.64x64.jpg Richard's Avatar

    Richard

    Tax Attorney

    Satisfied Customers:

    3229
    29 years of experience as a tax, real estate, and business attorney.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    6121
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JG/jgordosea/2012-6-7_43138_GordosVeritas.64x64.jpg jgordosea's Avatar

    jgordosea

    Enrolled Agent

    Satisfied Customers:

    2783
    I've prepared all types of taxes since 1987.
  • http://ww2.justanswer.com/uploads/OZ/ozaukeecpa/2012-6-7_193219_Picture1croppedandshrunk.64x64.jpg MequonCPA's Avatar

    MequonCPA

    Certified Public Accountant (CPA)

    Satisfied Customers:

    2231
    CPA, Over 30 yrs experience w/individuals and small businesses. Masters in Tax.