I wrote this the other day , but do not see it posted. So if
my understanding is correct, the AMT NOL is basically the
NOL (adjusted for AMT) carried forward or back. By entering
it on Form 6251 Line 27 it offsets any NOL entered on Line
10. In effect you are not taxed by AMT on these
carryover/carryback NOLs. I hope I get it now. Is this
correct?

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So if my understanding is correct, the AMT NOL is basically
the NOL (adjusted for AMT) carried forward from previous
years. By entering it on Form 6251 Line 27 it offsets any
NOL entered on Line 10. In effect you are not taxed by AMT
on these carryover NOLs. I hope I get it now. Is this
correct?

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"mel" <maris7[at]optonline.net> wrote:

- quote -

You compute AMT NOL as you would the regular NOL. You enter
the AMT NOL on Form 6251 on the line that asks for the AMT
NOL. I don't know if there will be a difference between the
two or not. My gut says yes, and probably to a lesser AMT
NOL, but you should be able to calculate it (and it helps if
your software does it for you).

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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The NOL that was added for AMT was the same amount that was
carried forward to the 1040 for 2003. Taxpayer had very
little income in prior years and the AMT was not generated.
I have very little experience with NOLs, especially as they
relate to the AMT.

Would there be a difference with NOL and AMT NOL in this
case, AND if so where and when should it be entered?

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"mel" <maris7[at]optonline.net> wrote:

- quote -

Did you enter his AMT NOL??? You knew there was one,
right???

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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In 2003 Client had a $40,000 carryforward NOL. Other income
items totaled about $74,000. So his AGI was about $34,000.
His regular tax was about $2,000, BUT the AMT kicked in by
adding back his NOL. Thus he lost the advantage of most of
the the NOL and there was an additional AMT tax of $6,000.

Since the NOL wound up becoming AMT taxable income, is there
any way he can use the part of the $40,000 NOL that was
taxed by AMT? The 8801 indicates no carry forward from 2003
to 2004. It seems wrong that the NOL wound up being taxed
and the tax advantage was lost.

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