Hi AmyC,
Thanks for taking the time to respond. In the instructions you linked to, it was an example of ISO exercise - in my scenario, there is no ISO involved. Here are some more details regarding my taxes:
1. My 6251 has a positive value on line 2k. This came as a surprise to me. So I went looking for how it got there.
a. My Schedule D shows a short term gain on line 7.
b. My Schedule D shows a long-term loss, say, LT1 on line 8a.
c. My Schedule D shows a long-term loss, say LT2, on line 9. Both line 8a and line 9 agree with the 1099-B I received.
d. Note that these are all regular stocks/options trades through my brokerage account - no ISO involved in this.
e. My Schedule D has a net long-term loss on line 15 after netting out all the gains against the losses.
f. The combined line 16 shows a net gain, say N1.
2. Next, I went and looked into my "Schedule D AMT".
a. Line 7 shows a net short-term gain - this agrees with line 7 on the regular Schedule D.
b. Line 8a shows a long-term loss of LT1 - again, this agrees with line 8a on the regular Schedule D.
c. However, line 9 is not filled out by Turbo Tax (it is blank) - as a result, my long-term loss of LT2 is not being considered in AMT calculations.
d. All the other details for the long-term gain/loss in Schedule D AMT is identical.
e. As a result, my Schedule D AMT shows a net gain of N2 on line 16 - N2 is much higher than N1 (from line 16 of regular Schedule D).
What I am not clear on is, why are my long-term losses (for which the broker didn't report cost-basis to IRS) not being considered in "Schedule D AMT"? The instructions on line 9 of "Schedule D AMT" says: "Long-term totals from all Forms 8949 with box E checked" - going by that, I expect Turbo Tax to have filled in line 9 with the value from form 8949. My form 8949 does show LT2 with box E checked. So why was that not populated on line 9? This is resulting in a larger/additional tax burden on me.
Any insights would be much appreciated!
Thanks,
AJ
