Sale of Primary residence triggering AMT?

[jpilotpro]

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.

[jtax]

I did a test case and I am not seeing that. Did you go through the interview and tell TT this a qualifying personal residence sale? (If so, there should be a Home sale Worksheet for it and an entry on a form 8949 showing the gain and the excluded amount as a code H adjustment.)

Can you check form 6251 and let us know what lines the capital gain is appearing on? 

In general an asset can have a different gain for AMT purposes compared to regular tax purposes. (Exercise of ISO options and later sale is a common example). However that should not be the case for your home except perhaps because of the depreciation if the AMT deprecation were different. But that would be modest.

Because IRC 121 is about an exclusion and not a deduction, the gain is never in your income. The AMT calculation in IRC 55-57 taxes your regular income and adds back some deductions but not, as far as I can seen, any exclusions. 

https://www.law.cornell.edu/uscode/text/26/121

https://www.law.cornell.edu/uscode/text/26/55 et. seq.

[jpilotpro]

Thank you.

I went through the questionnaire several times and couldn’t fix it.  So I went to the form and very carefully answered the questions, reading all the supporting info.  I had to put a check mark or enter a number a couple times to get the exclusion to take.  I’ll try to look in a day or two and give you the specifics but a blank box needed the $500K number input as the optional amount.  It seemed to take a blank box as a 0.  Then when following the subtraction instructions it omitted the exclusion.  With the number populated, all was correct.

thank you again for your time.