I don't totally agree with you.

the point here is: if your ordinary income tax is higher than your TMT tax, you can use your credit to reduce your ordinary income tax liability. That is AMT credit coming from. The logic beyond the practice is simple: let you use your favorable long term capital gain rate if possible.

But your case is bit different.

Even with cost adjustment, your TMT tax is higher than ordinary income tax, which means you have to apply TMT tax rate on your realized gains.

Something still confuses me. Why did you lose all credits if you still hold a portion of ISO?

所有跟帖： 

• worriedmom1, I sincerely appreciate your reply -左右为难a- ♂ (711 bytes) () 04/12/2008 postreply 20:02:48

• how can you have capital loss if you did not sell them? -worriedmom1- ♀ (119 bytes) () 04/12/2008 postreply 20:12:52

• 回复：how can you have capital loss if you did not sell them? -左右为难a- ♂ (297 bytes) () 04/12/2008 postreply 20:19:57

• you are very good at this area. -左右为难a- ♂ (151 bytes) () 04/12/2008 postreply 20:23:26

• If there is no such credit, you have to pay higher -worriedmom1- ♀ (303 bytes) () 04/12/2008 postreply 20:33:00

• YES, it only shows up in a worksheet, -左右为难a- ♂ (188 bytes) () 04/12/2008 postreply 20:36:48

• if you have an attached worksheet, maybe it is enough. -worriedmom1- ♀ (0 bytes) () 04/12/2008 postreply 20:54:07

• Thank you very much. -左右为难a- ♂ (180 bytes) () 04/12/2008 postreply 21:13:05