How do I recognize AMT tax credit from sales of ISO that I sold in 2018 but exercised in 2011?

Forum|Forum|7 years ago
June 4, 2019
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I exercised ISO shares in 2011. I had to pay AMT in 2011. Completed AMT form 6251 in 2011 and line 16 shows difference between regular tax and AMT tax...say $100,000. I sold shares in 2018. How do I recognize the AMT credit and my understanding that I can apply against my regular tax for 2018. I don't have AMT tax in 2018.

TurboTax Home & Biz Mac

Best answer by TomYoung

Record the sale using the ISO "Guide me step by step" interview. You'll enter your Form 3921 information and the sale details and TurboTax will make a reversing entry on Form 6251, reducing your AMT taxable income and potentially gaining you some AMT credit.

Tom Young

TomYoung

Answer

Alumni - Champ

Tom Young

kkdas2

Level 2

How do I use ISO "Guide me step by step"? If I go through "Other Tax Situation" and select "AMT" Update, I don't see any ISO related options. If I use "ISO Exercise and Hold" in "Investment Income" under "Wages & Income", it only allows exercise (purchase) of ISO stocks.

As the original question, I exercised ISOs and paid AMT a few years ago, now I sold the stocks in 2018 and want to adjust losses against FMV, but don't know how Please help. Thanks.

TomYoung

Alumni - Champ

After entering the basic trade information on the "Tell us about your [Broker's Name] 1099-B" click the "Guide me step by step" button then on the next page select "I have sales from an Employee Stock Plan..." and, finally, "Incentive stock option plan...".