Can you please explain this based on this example where would AMT have any impact on the stock basis in this stock basis calculation. The form 7203 that we are required to submit with 1040 does not have a line to reflect AMT in the shareholder stock basis computation, so I am not understanding the impact of this.

From K-1 (using simple numbers):

Income - 100

Distribution - 200

AMT Post 1986 Depreciation Adjustment- 200

To calculate ending stock basis, we take beginning basis, add income and deduct distributions. The distribution in excess of basis is a gain. So let's use 0 as beginning basis, add 100, deduct 200. Ending basis is zero and 100 is reported as a gain on the return (distribution is in excess of basis). Where and how AMT of 200 is used in this calculation and would impact how much of a gain we need to report?

A different example with a loss.

From K-1:

Business Loss -100

AMT Post 1986 Depreciation Adjustment- 200

Let's say, the beginning stock basis is 50. So we can only take a loss of 50 on 1040 due to stock basis limitation. So we take 50 as a loss on 1040. Where and how AMT of 200 is used in this calculation or would impact the allowable loss of 50?

Thank you