AMT offset between options and LP funds

Hi All,

I'm new to this board and I'm hoping someone can help me with a (hopefully simple) last minute question.

I have a large AMT carryforward from previous years (I exercised options in 2001 that are now underwater but I'm still holding the stock).

This year, I have received gains from a venture capital LP fund that has realized long term stock appreciation.

My question is whether, by selling my underwater stock, I could use those losses to offset the gains from the venture capital LP distributions?

Any assistance would be greatly appreciated!

Thanks,
Springer693

Springer693,

Well it is probably too late to do anything for 2006. But you may want to look into a new AMT Credit Recovery law.

In December of 2006, as part of legislation that extened some tax deductions tha had expired at the end of 2005, Congress gave tax payers with AMT Credit an opportunity to use that credit or receive it as a Refundable Tax Credit. AMT Credit for any tax year up through 2003 is eligible. You can begin claiming that AMT Credit on your 2007

You can claim this AMT Credit at a maximum rate of 20% per year. There are income phase outs that apply.

Here is a link to a forum that discusses this new legislation.
http://www.reformamt.org/forum/viewtopic.php?t=599

And this report has more information:
http://www.rothcpa.com/archives/002324.php