ISO exercise, stock sale and AMT credits: is this all supported in TurboTax?

[bubuset]

Hello,

I am trying to decide whether Turbotax (online edition) will be able to cover my tax situation for 2018, or if I should look for a CPA. I exercised ISOs in the state of CA in 2017, and paid AMT on the bargaining element. Taxes were easily filed last year with TurboTax as it correctly calculated the amount of AMT I owed, and in general I've been using TurboTax since 2010.

For 2018, I will be selling some of those shares realizing significant capital gains, and I am looking for an answer to the following questions:

1) Will Turbotax be able to automatically fill and handle form 8801 and a potential recoup of the AMT credits that I generated in 2017?

2) Will Turbotax be able to handle a higher cost basis for the sold shares for AMT purposes, taking into account the AMT portion I already paid?

3) Will Turbotax be able to handle the same scenarios 1 and 2 for the state of California? Will AMT properly be handled there with an adjusted costs basis, as well as the ability to utilize AMT credits?

Thanks

[asavitzucla]

Did you receive a proper response on how to do this? I have exactly the same issue as you outlined it, but can't figure out how to get it to recoup the AMT credits.

[TomYoung · Accepted solution]

Understand, too, that TurboTax is not going to handle those issues unless you take the right path in the "Stocks, Mutual Funds, Bonds, Other" interview.  Be sure that you use the "Guide me" process here and tell TurboTax that the stock sold was acquired via an ISO.  That's what will make TurboTax enter a "reversing" entry for the sale over on Form 6521 and the AMT version of Schedule D.

Tom Young

[Critter]

Yes the TT program can handle all of those items ... if you use the ONLINE version you must use Premier or better ... or you can use any of the Downloaded versions.