Ask HN: New tax plan and AMT?

#1

Post by toocool » Fri, Nov 03, 2017, 2:50 AM UTC

The proposed tax plan should repeal the AMT tax, which is fundamentally a good thing for startup employees.

My question is: if you already paid AMT tax in the past and are still taking advantage of AMT credits every year (because you paid AMT tax due to stock options exercise), will those credits go away from now on? Or will those people be grandfathered in and will keep calculating their AMT taxable every year so that they can claim the credit if the spread between federal and AMT in future years is positive?

I tried to read the bill but it's really too complicated for me to understand.

Thanks

Re: Ask HN: New tax plan and AMT?

#2

Post by bradleyjg » Fri, Nov 03, 2017, 3:24 AM UTC

Provision: Under the provision, the AMT would be repealed. If a taxpayer has AMT credit carryforwards, the taxpayer would be able to claim a refund of 50 percent of the remaining credits (to the extent the credits exceed regular tax for the year) in tax years beginning in 2019, 2020, and 2021. Taxpayers would be able to claim a refund of all remaining credits in the tax year beginning in 2022. The provision would generally be effective for tax years beginning after 2017.

From http://3hm75d2ak36959oew3zvzim1.wpengine.netdna-cdn.com/wp-c... Page 26

Keep in mind that it is highly unlikely the proposed bill will make it through unchanged. It hasn't even passed the House and the Senate still needs to weigh in.

Re: Ask HN: New tax plan and AMT?

#3

Post by toocool » Fri, Nov 03, 2017, 3:29 AM UTC

bradleyjg wrote: post #2

Provision: Under the provision, the AMT would be repealed. If a taxpayer has AMT credit carryforwards, the taxpayer would be able to claim a refund of 50 percent of the remaining credits (to the extent the credits exceed regular tax for the year) in tax years beginning in 2019, 2020, and 2021. Taxpayers would be able to claim a refund of all remaining credits in the tax year beginning in 2022. The provision would gen…

Thank you Sir/Ma'am, much appreciated.