In an earlier post, a respondent mentioned that one could defer a large capital gain to avoid (or hopefully) minimize the AMT monster. That is exactly what I need to do, but I do not know how. I sold a stock I had had for years as the market was crashing in September 2014, which triggered a huge capital gains tax. I reinvested the money and subsequently incurred some losses. I worked 333 days, 12-15 hours per day in 2014, so I was already paying a huge amount of taxes. Before the stock sale, I had more than enough withholding to get a modest refund, but the capital gains caused AMT to completely wipe out my personal exemption, all of my family exemptions and deductions, and drastically reduced the itemized deductions that would have (before 2012) reduced the taxes. Now I owe (if forced to take the capital gains this year) an additional huge tax. So, can someone tell me how to defer these capital gains to next and/or subsequent years (using TurboTax?)

In an earlier post, a respondent mentioned that one could defer a large capital gain to avoid (or hopefully) minimize the AMT monster. That is exactly what I need to do, but I do not know how.=========>> long-term capital gains are taxed at 15% the regular tax system and 20% under the AMT system. In effect, you’re penalized with the AMT. And it may be more likely that modest deductions will reduce your regular tax enough lower than your TMT, I guess, to trigger the tax. For example, say , all you have are long-term capital gains of $100K. also say, Your tax bill under the AMT and the regular system would be $20K, and you wouldn’t be subject to the AMT as your TMT=regular tax liability of $20K. But as soon as you factor in a deduction say, for your state income taxes, your regular tax bill drops and your TMT get larger than your reg tax liability. You become subject to the AMT.There are a number of strategies that you can use to defer the payment of your capital gains taxes and depreciation recapture taxes,i..e, sec 1245 , I mean, if any need be paid. so it is important that you meet with your tax advisor to review all of the options. Some of common tax-deferral strategies are installment Sale through a Seller Carryback Note or Structured Sale through a Deferred Sales Trust, or DST

In the case of installment sales, The business owner could structure the sale of his or her business by carrying back the financing, which is often referred to as seller financing or a seller carryback note. Seller financing is merely an installment note or promissory note where the buyer of the business entity or assets/property makes periodic payments to the seller. The capital gain taxes are partially of fully deferred over the term of the note and are taxed as principal payments .The installment sale has positive and negative features like any income tax deferral strategy does. The obvious positive is that you can sell your business / property and defer the payment of your capital gain taxes by structuring a seller carryback note. However, the risk of buyer default on the installment sale is a considerable negative.. For deferred sales trusts are highly effective capital gain tax-deferred strategies, similar to the installment sale or seller carry back note, but without the risk of buyer default because the Trust receives 100 % cash proceeds from the buyer at the closing of the transaction, thus removing the buyer from the equation. Default Sales Trusts and provide other great tax and estate planning advantages and sellers do not have to purchase replacement properties as with the 1031 exchange strategy.The capital gains tax is realized or triggered, but not recognized or paid. The capital gains tax liability is partially or fully tax deferred over the term of the installment sale note created within the Deferred Sales Trust account, which you will negotiate in advance directly with the Trustee of the Deferred Sales Trust.

Thank you for the info, but can I use any of that to apply to my specific situation? My capital gains came from a sale of stock. Does that make a difference? And if there is a way to defer them, can you give me an idea how to find that option in TurboTax?

Thank you for the info, but can I use any of that to apply to my specific situation? My capital gains came from a sale of stock. Does that make a difference?========>>As said, your long-term capital gain could result in making you liable for the AMT by increasing your AGI and taxable income on your return(however, you may not be subject to AMT aslongas you pay tax at the regular rate 15% or 20% if your marginal rate is 39.6% for 2014 and relatively you claimed lower deductions) . So, you need to consider selling partially over a period of several years to avoid AMT/taxable income.IN your case I guess you need to reduce your AGI/taxable income by cutting your LTCG amount since AMT calculation begins from your taxable income on your return. please read below for AMT exemption to cut your AMT base(AMTI minus AMT exemption).As mentioned previously, an installment sale is NOT an option for you selling capital assets , shares, for a gain ;the installment sale cannot be used to report gains from the sale of stocks/securities and is only used on real estate transactions. So, to defer capital-gains taxes, you need to reinvest money from stock sales in S.S.B.I.C.'s; To earn the deferral, you must put all of the cash from the stock sale, not just the long term gains, into the investment company. Up to $50K in gains can be deferred each year in this way, which translates into a savings of $19.8K in Federal taxes for an investor in the top Federal bracket. Over a lifetime, an investor can shelter up to $500K in gains, and need not pay the deferred taxes until the S.S.B.I.C. investment is sold.




NOTE; to avoid AMT , you need to plan your income, liabilities and taxes throughout the year, and not just at tax time every April. to avoid your AMT on your return, you MUST properly decide TMT amount UNLESS your TMT is larger than your regular tax liability, you are not subject to AMT; however, this strategy is I guess, not so easy to properly control. What I mean is that for example you usually take std deductions and personal exemptions, then , for your AMT calculation, you need to add back them as income into your income for AMT purposes. An d this ‘d increase the possibility of AMT on your return. This is one of the reasons that married couples with children are strongly affected by the AMT. If you are a married couple with 3 children, you lose $19,750 ($3,950 x 5) in personal exemptions under the AMT in 2014. You need to add back $19750 for your AMT purposes; ad so is medical expenses that you deduct on your Sch A of 1040 .Instead of std deductions, in calculating the AMT, you cannot take itemized deductions for state and local income tax, real estate taxes
, and personal property taxes, even though these are deductible on your regular return. If you do, then you must add them back and it’d increase your TT and you can be subject to AMT UNLESS your TMT is lower than your regular tax liability. Another way is to avoid the $150K to $415K income range. If it is possible to adjust your salary and declared income for the year, do so to keep it below $150K or over $415K. That range is most susceptible to the AMT. In the case of Medical expenses , they can only be deducted from the AMT if they exceed 10 percent of your AGI. You may accelerate or defer your payment of medical expenses based on your AMT exposure. •Sign up for a pre-tax medical deduction plan such as a HSA if your employer offers it. This will reduce your net salary to pay for medical expenses before taxes, which will help you reduce your AMT liability.


And if there is a way to defer them, can you give me an idea how to find that option in TurboTax?====>>>>>>>..Sorry; I do not use turbo tax . so I guess you need to contact the software vendor for tech help. Why do not you go to the software input screen and enter your current year tax information. This includes realized deductions, income, itemized deductions on Sch A if you itemize, or personal exemption and tax payments or etc. And then you can check if there is any number on 1040 line 45.