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JLcpa
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Joined: 22 Sep 2009
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| Posted: 27 May 2011 at 18:27 | IP Logged
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Gleim:
Bob is single and has taxable income of $165000 in 2009. His only tax preference item is on the sale of qualified small business stock which he has held since Jan 1 2000. He sold the stock on Dec 31, 2009. Gain on sale $35000. However Bob was able to exclude 50% of this gain. Bob has no other adjustments or loss limitations. What is Bob's gross AMTI?
Ans is $166225
calculated as: $165000 + ($35000 X 50% X 7%)
The 7% is the amount of preference added back for AMTI, not the entire 50% gain exclusion.
Could someone please tell me what the 7% is all about?
Thanks.
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Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
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REG- May 2011- 78
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Jef2006
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| Posted: 27 May 2011 at 21:06 | IP Logged
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look at the form 6251 line 13 as well as its instruction.
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BEC 78
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Thanks to Becker
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JLcpa
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| Posted: 27 May 2011 at 21:14 | IP Logged
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Thanks Jef. No explanations given in the IRS website; guess it's another number we'll have to remember.
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Jas, Jersey City, NJ
AUD- 18 Nov 2009- 86
FAR- 28 Jan 2010- 91
BEC- 26 Feb 2010- 87
REG- May 2011- 78
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Topic: AMT- individuals
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