<foqeh[at]yahoo.com> wrote:

- quote -

I believe the answer to the question is going to lie in
which of you owns the assets that you are reporting on the
tax return.

The capital loss carryover will depend upon whose shares
were sold to create a carryover (yours, hers, or joint). If
they were held jointly, then you split the carryover 50-50.

Since you refer to "your" ISO stock options, and they are
not hers yet (although they "will" be split), then I would
think the AMT liability and credit belongs to you. This one
might be worth a bit of research on how it has been dealt
with before. After looking around a little bit, I suspect
that any tax benefit related to the shares will be
proportionally distributed. But beyond that, this will
become a research project.

Bryan
-------- Bryan Kellar, EA
Oregon Tax Help, Inc. Portland, Oregon
www.oregontaxhelp.com
www.canadatax.org

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foqeh[at]yahoo.com wrote:

- quote -

This is not surprising. While it is always dangerous to
generalize, I'd guess that most CPAs tend to specialize in
OTHER areas of the tax code, such as businesses, rental
properties or investments.

For questions related to filing status or dependency issues,
you would probably be better off to look for a
"retail/storefront" type of tax practice, preferably headed
by someone with at least an EA credential and/or several
years of experience.

MTW

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<foqeh[at]yahoo.com> wrote:

- quote -

First, I don't see any way for you to allocate AMT
liabilities - these are the direct result of the items shown
on a particular return. If you exercised ISO options on
your 2003 then this item goes on your 2003 return, not hers,
and you get to deal with the AMT issue, not her - regardless
of the fact that you will be splitting the shares later.

Second, I have never had to deal with trying to allocate an
AMT credit so I'm not positive of how it would work without
researching it - that's the caveat. However, since the
credit arose on a joint return filed in a noncommunity
property state I would think that the credit would have to
follow the source. Since it was generated as a result of
YOUR activity, it would be your credit and I don't think it
should be allocated.

Third, look to the title or registration of the account.
Accounts in your name with losses are yours, accounts in her
name are hers, accounts that are title to both of you should
be split according to how you split any remaining assets in
the account.

Again, the caveat here is that I would have to research
these items before I could give you an opinion you could
hang your hat on, I'm just sharing what my gut says is
right.

Gene E. Utterback, EA

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Starting from beginning of tax year 2003 my wife and I lived
separately (going through divorce now) and my wife meets all
5 tests to file as HoH (we have two kids that live with her)
for the year 2003. Since we were still married on Dec 31 I
have to file MFS (as I understand). We do not have
separation agreement in force yet and we are not in a
community property state. Since there is a major difference
in various deduction limits between MFS and HoH I need to
know how much freedom do we have in allocating certain
non-obvious income and assets specifically:

1. AMT credit generated by cash exercice of my ISO stock
options in years prior to 2003 (The shares are to be split
50/50 between two of us).

2. AMT liability for year 2003 for my cash exercise of ISO
stock options. (Again the shares to be split 50/50).

3. Capital loss carryover (large in our case) from assets
aquired during marriage.

I know that it is best to search professional advice but so
far I have not been succesful in finding local CPA familiar
with MFS/HoH pecularities. One of the three guys I've
contacted told me that under no circumstances married person
can file HoH (which is not true), the others honestly
admitted they are not very familiar with this situation.

Please help...

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