Can I get a credit for California AMT in Colorado?

April 22, 2005

Subject: iso’s, amt, and moving states
Date: Mon, 28 Mar 2005
From: Matthew

Hi Michael,

I exercised and held some ISOs in 2002 and paid Federal and California AMT. In 2003, I moved from California to Colorado. I sold the shares I purchased using the ISOS in 2004.

I am wondering if and how I can claim credit towards my Colorado state taxes for my California AMT paid on the exercise of the ISOs. Am I out of luck on this? Has there been any clarification on this since you wrote about the problem in 2001?



Date: Fri, 08 Apr 2005

Hello Matthew,

I haven’t seen anything to give you any comfort. To my knowledge, Colorado won’t allow a state tax credit for an AMT paid in an earlier year for the exercise of an ISO when the stock is sold for a capital gain in a later year. I’m not an expert on Colorado taxes, so consider consulting with a local CPA.

Good luck!

Mike Gray

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