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Shan-Nel Simmons
Shan-Nel Simmons, Enrolled Agent
Category: Tax
Satisfied Customers: 22
Experience:  Tax Professional and Owner at Nel's Tax Help,LLC
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If I have regular passive loss tax carryovers, how do I

Customer Question

If I have regular passive loss tax carryovers, how do I calculate the AMT loss carryover?
Submitted: 12 days ago.
Category: Tax
Customer: replied 12 days ago.
I do have unallowed losses per the 2015 Form 8582, but I can't see if there are AMT unallowed losses that I can carry-forward since I sold a rental property.
Expert:  Shan-Nel Simmons replied 12 days ago.

Line 19—Passive Activities

Refigure your passive activity gains and losses for the AMT by taking into account all adjustments and preferences and any AMT prior year unallowed losses that apply to that activity. You may fill out a second Form 8582, Passive Activity Loss Limitations, and the other forms or schedules on which your passive activities are reported, to determine your passive activity loss allowed for the AMT, but don’t file the second set of forms and schedules with your tax return.

Example.

You are a partner in a partnership and the Schedule K-1 (Form 1065) you received shows the following.

  • A passive activity loss of $4,125,

  • A depreciation adjustment of $500 on post-1986 property, and

  • An adjustment of $225 on the disposition of property.

Because the two adjustments above are from the passive activity and aren’t allowed for the AMT, you must first reduce the passive activity loss by those amounts. The result is a passive activity loss for the AMT of $3,400. You then enter this amount on the AMT Form 8582 and refigure the allowable passive activity loss for the AMT.

Customer: replied 12 days ago.
Is there a comprehensive list of AMT passive loss allowances, since they're different than regular pass allowances?
Expert:  Shan-Nel Simmons replied 12 days ago.

The link I provided talks about alternative minimum tax adjustments that are different than regular tax adjustments. The instructions above the link explains how you are going to limit your passive activity loss by the alternative minimum tax adjustments. The link provides examples and explanations of each adjustment.

Expert:  Shan-Nel Simmons replied 12 days ago.

Glad to help. Please leave a five star rating.