form 8801

[gn]

Does anyone know how to get lacerte to calculate form 8801 automatically when you have an AMT tax paid on a deferral item like an ISO exercise and the AMT tax paid to be rolled forward as a credit or is this something we have to do manually?  

[George4Tacks]

Did you sell some of this ISO? Did you enter the AMT basis when you input the sales price? 

[gn]

yes  I'm actually going back a few years and amending the year of exercise they never booked the bargain element as an AMT addback as well as a few other non AMT related items. So I booked it, they are now paying AMT that year on it and I need to roll over the credit to future years to see if I can use it to lower taxes by amending the 2 years in between then and now. The shares are still held and after this amended return the AMT cost basis of the shares will be correct. 

[George4Tacks]

Are you using Lacerte for all these returns?

[gn]

Hi,

Yes I plan on using lacerte I have to recreate the returns to amend as this is a new client but I guess that's how life goes sometimes!

[George4Tacks]

I would start with the year that the bargain element was not posted. Screen 40, Incentive Stock Options. 

Then proforma to successive years to see if any of the AMT credit is used. You can use all 9's for the SSN to not have to pay an REP. You should see from the proforma how that credit carries. I would just through in summary numbers for most everything on the tax return, since you probably will not be amending - 1 or maybe 2 w-2s - 1 summary number for schedules C, E, F, Etc - one sale of LT and one for ST gain(loss) -etc. If the 8801 actually kicks in for one of this intervening years, then you may need to do a bit more detail. I would not try to jump from the 1st year to the N th year without review each successive years. Notice line 1 of the 8801 starts with what was on the 6251 for the 1st preceding year. 

Get a good retainer.