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New Member

How to enter AMT Adjust investment income and expense

I hit AMT when reporting last year (2017) tax. Turbotax asked me to adjust investment income and expense without any hints. How can I know what amount to input?

BTW, after finishing the AMT it reported that ~ $5000 for AMT but I didn't see the federal or state tax due amount changing on the left side, why?  


2 Replies
New Member

How to enter AMT Adjust investment income and expense

The adjustment amount is pretty limited

1st potential adjustment 

If you used standard brokerage margin loans to buy anything other than private activity bonds, then you would enter no adjustments here.  If your margin loans were used to purchase private activity bonds, you would enter here the amount of the interest on that portion of your loans.  

2nd potential adjustment 

This adjustment would occur if you used certain mortgage proceeds to purchase income-generating investments.

For AMT purposes mortgage interest is usually added back to income if the proceeds were used for any purpose other than to buy, build, or improve your home.  However; if those proceeds, over and above what was used to buy, build, or improve your home, were used to make income-producing investments,you can enter that amount of interest here, and it will be allowed as a deduction for AMT.

AMT is being calculated behind the scenes at all times for your return.  By the time you get to the AMT interview section, your AMT is already calculated, and you would only expect to see a change in your tax owed if you make an adjustment or enter information not already entered on your return at any earlier time.

Returning Member

How to enter AMT Adjust investment income and expense

I'm plugging in numbers from a trust Schedule K-1 (Boxes 1, 2a, 2b, 12A, 12B, 12J, 14E* and 14 I*) and have no idea what all of this means.  I thought I could fill in the K-1 numbers, and the software would plug the numbers in where they're supposed to go. Now I am here instead. Looks like I may have to hand my taxes over to a CPA -- and all because of a K-1!

Hint: Why not include this explanation in a "Help" popup window? The whole idea of tax preparation software is to make it so people can complete their own taxes.

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