What goes on line 9 for form 6251?

June 6, 2002

Subject:   Line 9 of AMT form 6251
Date:   Tue, 12 Feb 2002
From:   Carol

Dear Mr. Gray,

I’m confused on what applies for line 9 of form 6251. If I have a large capital loss (which is all from sale of stocks this year and carryover from prior year losses) on Schedule D, and I reported a $3000 loss on Form 1040, does that mean I can enter the remaining loss on Line 9? If so, that would offset my ISOs.




Date:   27 February 2002

Hello Carol,

You should prepare Schedule D on both an AMT basis and a regular tax basis. The difference in the gain or loss is entered at line 9. The $3,000 capital loss limitation applies for both regular tax and alternative minimum tax. See the instruction for Form 6251, where this is highlighted this year.

Good luck!

Mike Gray

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