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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Tax return, I paid taxes. Now I am doing my 2015 taxes and

Customer Question

For 2014 tax return, I paid AMT taxes. Now I am doing my 2015 taxes and want to see if I can claim those credits in 2015. I have the Form 6251 from 2014 but no 8081 form.
The AMT was due to exercised(but not sold) ISO. In 2015, I sold some of these ISOs. I feel like I am paying double taxes as so far the Turbo Tax is showing I have a huge capital gains.
Do I need to ammend my 2014 tax return with a 8081 for? Or do I file 8081 in 2015 to see if I qualify for some credits for AMT paid in 2014?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
When I look at the Box D on my 2015 1099-B form, I see that cost basis is calculated based on the grant price. Shouldn't that be based on the exercise price?
Expert:  PDtax replied 1 year ago.

Hi from Just Answer. I'm PDtax. I'll try to assist.

It would be best if I could see the returns in question. If you agree, a price adjustment will be required.

If you think we can work this way, I will be glad to assist. Please advise.

Expert:  PDtax replied 1 year ago.

I see that you are online, but did not respond to my offer.

My availability will be limited next week, so I will opt out. Other professionals can review your question and assist.

Customer: replied 1 year ago.
I dont think I want to share the returns here. However, if you would answer these questions below, that will be a good start:
- I paid AMT in 2014 for ISO option I exercised but not sold. As you know, the amount was calculated based on the (FMV-Grant_price)*#_of_shares. In my 2014 return I dont see a 8081 form but I do have the 6251. I sold those ISO options in 2015 making sure they were all Long Term Cap Gain (2yr since grant and 1 year since exercise).
Question #1: Do I need to complete 8081 this year to see if I qualify for credits?
Question #2: In the 1099 Form for 2015, broker shows the cost basis as (iso_grant_price*#_of_shares) and proceeds as (ISO_sale_price*#_of_shares). Then the total gain/loss is (proceeds - cost_basis) which is very close to the AMT calculated gains I had in 2014. It looks like I would be paying taxes on the gain based on the 1099 form this year, in addition to the AMT taxes I paid last year. Shouldn't the total gain reported in 2015 be ((FMV_on_sale_day - FMV_on_exercise_day) * #_of_shares)?
Customer: replied 1 year ago.
Question #3: Should I have filed a 8081 form for 2014 year? If so, should I go ahead and amend my 2014 return? 2014 was the first year I've ever had to pay AMT.
Customer: replied 1 year ago.
Correction to Question #2 and 3. the form in question is 8801
Expert:  Jonathan Tierney replied 1 year ago.

Hi, my name is ***** ***** I can assist. Your question is regarding the AMT credit and ISO options is very actually very complicated, and I do not see how I could answer without seeing your last year's tax returns. I will post a service offer and you can upload a redacted version (personal information blacked out) to my Dropbox folder, so only I will be able to what is on your return.

I know I can help you out with this, and I hope to work with you further.

Thanks, Jonathan