Marie Posted February 29 Report Share Posted February 29 Client has a large farming NOL, now it shows AMT due. Is this correct? Are there any preference items I might be missing? Quote Link to comment Share on other sites More sharing options...
Marie Posted February 29 Author Report Share Posted February 29 I need help understanding this. Please share some knowledge with me Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 29 Report Share Posted February 29 Not enough information to help you, except to suggest that you read the instructions for Form 6251 Quote Link to comment Share on other sites More sharing options...
Marie Posted February 29 Author Report Share Posted February 29 i have read. farmer has a 181000 nol, in 2023 his farm had a profit of 150000 now amt pops up and he owes 7000 in amt. does that sound correct? Quote Link to comment Share on other sites More sharing options...
Lee B Posted February 29 Report Share Posted February 29 Generally speaking, an NOL is limited to 80% of taxable income, In theory he could own AMT but without working through the 6251 step by step who knows? Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 29 Report Share Posted February 29 1 hour ago, Marie said: i have read. farmer has a 181000 nol, in 2023 his farm had a profit of 150000 now amt pops up and he owes 7000 in amt. does that sound correct? I think you need to look at what the AMT NOLs have been over the years to see if they are available to be used against current year income. I would need to do some refreshing of my own since it has been a while since I have never done a farm NOL and I am speaking from my faulty memory. Don't take this as gospel, just a thought. Tom Longview, TX 3 Quote Link to comment Share on other sites More sharing options...
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