In the California State Tax Return 540 where do I enter the AMT cost basis adjustment for shares previously acquired from ISO?

[arvindsk]

Hi,
Running into the same issue. Was anyone able to get past this issue in the online version?

Thanks!

[arvindsk]

What we ended up doing is adding the value under form 6251 Alternative Minimum Tax, Part I, field 2 k,  Disposition of property (difference between AMT and regular tax gain or loss)  from the federal return to the California Related Adjustments field under AMT section in turbotax online. This was reflected under Schedule P(540) Related Adjustments under Part I, Alternative Minimum Taxable Income (AMTI) .

[OutgoingSerif]

Running into the same issue with TT Online

[ajayka]

I can confirm this is still an issue with TurboTax 2024 (I use the Home & Business desktop edition). If you make an ISO adjustment for the Federal tax (which will populate Form 6251, line 2k), TurboTax does *not* transfer this ISO adjustment to the California return. Instead you will need to manually enter the value on Form 6251, line 2k on Schedule P (540), line 9. And in addition also track your California AMT Capital loss carryover for the next year if the sale of ISO results in an AMT loss (this can happen if the sale price is less than the FMV on the exercise date; this is surprisingly quite common)