It appears that I have triggered AMT. I sold in 2021 what used to be our primary residence in that we resided there more than 2 of the last 5 years. Turbotax correctly reports that I do not have to pay capital gains taxes on the $185,000 leaving just a recapture of home office depreciation. However, after entering all the rest of my information, AMT calculation is using this capital gain to come up with my income. Is this correct? I thought that this sale was exempt from tax of any kind (standard or AMT). There is a button I can click to adjust this capital gain, but the instructions are clear as mud. I know I can start removing deductions to see if I can make this AMT amount decrease, but before I do, I wanted to know if I am missing an entry or technique to avoid AMT on the sale of a principle residence capital gain.
