Author Topic: Question about AMT  (Read 1088 times)

dragonwalker

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Question about AMT
« on: April 15, 2015, 11:23:17 PM »
Hi there,

So in about a week I'll have an opportunity to sell stocks that I hold and net long term capital gains profit. My normal income every year comes out to about 53K which happens to be just on the cusp of the AMT exception for 2015.

If I were to sell all my shares than I would realize a net gain of about $30K. My understanding is that I will be taxed on this $30K at 15% but since my "new income" puts my total gross at about $80K than what other taxes am I not considering? Am I strictly going to need to pay only 15%, will this extra income effect how much I pay on my regular W2 income?

MDM

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Re: Question about AMT
« Reply #1 on: April 16, 2015, 12:33:37 AM »
Discussion below assumes you file with single status.

Unless these are Incentive Stock Options it is unlikely you will need to worry about the AMT.  The $52,800 exemption doesn't change until your total income is over $117,300 (see http://www.irs.gov/pub/irs-pdf/i6251.pdf).

For $53K AGI from wages only, and standard deduction, your 2015 federal tax would be ~$6,470.

For $53K wages + $30K LTCG = $83K AGI, and standard deduction, your 2015 federal tax would be ~$10,970.  Difference is $4,500 or 15% of $30K.