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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2850
Experience:  IRS licensed Enrolled Agent and tax instructor
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Will I be subject to Alt Min Tax on long term gain?

Customer Question

I have a short term capital loss carry over of 225,000 and a current year long term gain of 95,000. Will I be subject to Alt Min tax on the gain?

Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Alternative minimum tax is usually not triggered by capital gains.

The triggers are usually the followings items:

  • Accelerated Depreciation
  • Stock by exercising an incentive stock option and you did not dispose of the stock in the same year
  • Tax exempt interest from private activity bonds
  • Intangible drilling, circulation, research, experimental or mining costs
  • Amortization of pollution-control facilities or depletion
  • Income (or loss) from tax-shelter farm activities or passive activities
  • Income from long-term contracts not figured using the percentage-of-completion method
  • Interest paid on a home mortgage not used to buy, build or substantially improve your home
  • Investment interest expense reported on Form 4952
  • Net operating loss deduction
  • Alternative minimum tax adjustments from an estate, trust, electing large partnership or cooperative
  • Section 1202 exclusion
  • Any general business credit in Part I on Form 3800
  • Empowerment zone and renewal community employment credit
  • Qualified electric vehicle credit
  • Alternative fuel vehicle refueling property credit
  • Credit for prior year minimum tax

Here's a link to IRS AMT calculator/estimator :http://apps.irs.gov/app/amt2014/assistant/process?execution=e3s1

It only takes couple of minutes and you can use estimated number.