Alternative Minimum Tax

Use this section to indicate capital gains amounts that may be different for AMT purposes, as well as to add back any preference items. For example, one of the more common AMT-related questions we get is how to model Incentive Stock Options (ISO) exercises, since the discount element of ISOs needs to be factored in as a preference item. You can enter the amount of the discount element of any ISO exercises in Row 2i in the AMT section, and we’ll calculate any AMT liability.