Hello,
I have exercised and held ISOs in 2021. I have reported them on my 2021 tax return and paid AMT tax. In 2022, I was able to recoup all of the AMT tax paid previously via a credit (my AMT Tax Credit Carry forward for 2023 is now zero).
I have sold all of the ISOs in 2023 (qualifying disposition) for a capital gain. I have reported the sale on form 8949 and Schedule D using exercise price as my cost basis.
If I understand correctly, since ISOs are dual basis, I need to adjust my AMT cost basis (line 2k Form 6251). But I cannot figure out how to do it in TurboTax. I see the AMT Adjustment field on the "ISO Purchase Summary" but I don't know how to make that adjustment.
Is this done by checking the "I need to make an AMT Adjustment to my investment income or expenses" box?
If I do that, I still don't see anything on line 2k of Form 6251.
I am also not sure which box of the three (see screenshot) to put the AMT adjustment into and how to calculate the amount to put on line 2k.
Alternatively, I also tried to check the "The cost basis is incorrect or missing on my 1099-B" while entering the ISO sale and providing the info from form 3921 in subsequnt interview questions. This does seem to adjust the amount in column h (Gain or Loss) on Schedule D AMT, but 'line k" on my form 6251 is still zero.
Which one is the correct way to do it?
Finally, since I sold all of the ISOs in 2023 do I need to delete the "ISO Purchase Summary" for 2023 tax year or do I still keep it there and delete it next year?
Thank you!
