Is there AMT credit for worthless stock exercised in prior year?
I exercised ISO stock options a few years ago and paid AMT based on the spread between what was then the fair market value and the strike price.
Last year the company dissolved completely and these shares are now worthless. I know I can claim the capital loss by entering sell trades with income 0 and cost basis of the original exercise price. However since I've also paid AMT because of the exercise, is it possible to also claim AMT credit for those amounts?
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1 Best answer
TomYoung
Level 13
Jun 3, 2019 1:46:17 PM
You certainly can try, though there's no guarantee.
Use the "Stocks, Mutual Funds, Bonds, Other" interview and use the ISO "guide me step by step" process. That will create the reversing entry on Form 6251, lowering your AMT taxable income.
Tom Young
1 Replies
TomYoung
Level 13
Jun 3, 2019 1:46:17 PM
You certainly can try, though there's no guarantee.
Use the "Stocks, Mutual Funds, Bonds, Other" interview and use the ISO "guide me step by step" process. That will create the reversing entry on Form 6251, lowering your AMT taxable income.