Tax Notice Re: AMT Capital Loss Carryover

[T4X]

I have a client with a capital loss carryover showing $4,668 regular long term and $2,453 AMT long term in the disposition screen. Form 6251 line 2k is populated showing $547, which is the difference between the $3,000 regular capital loss limitation and the $2,453 AMT capital loss. However, this is not flowing to Schedule 2 line 17, so the AMT liability never carried to the 1040. The client received an IRS notice for this exact amount. Can you help me identify why Form 6251 is not flowing to Schedule 2 and whether this is a software issue?

[sjrcpa]

Several things are not making sense here.

What year return?

Why should the difference between the regular tax capital loss and the AMT capital loss carry to Schedule 2?

Was the client actually subject to AMT in the year in question?

What does the IRS notice say?

Is it just a coincidence that whatever amount they want = the AMT adjustment for capital loss?

[T4X]

The return year was 2024

From my understanding, the AMT would go to schedule 2 and then flow to 1040
They were subject to AMT because the AMT income came out higher than regular taxable income

The IRS letter says "we changed the amount of capital gain or loss on your tax return because there was an error on your schedule D, capital gains and losses. The error was in one of the following:

-Computation of the capital gain or loss on schedule D

-transfer of that amount to your tax return

-capital losses are limited to $3,000"

[Kathi_at_Intuit]

Hi @T4X Great to see you in the Community and thanks for posting. Lacerte Support would be able to take a look with you. While they cannot provide tax advice they would be able to take a look and see if there are any diagnostics or overrides that might be stopping the amount from flowing.