[Anonymous]

How do you treat AMT if it flows through to a Shareholders K-1 with respect to BASIS?

For example, suppose a Shareholder of an S Corp receives a K-1 with AMT of $300. If the Shareholder has positive BASIS, then what does the AMT do to his BASIS (+/-) ?

Thanks for the help!!

[jbergmann1]

Read this
Amt basis article

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[jbergmann1]

Also a basic answer would be nothing to his regular basis and something to his AMT basis.

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[Anonymous]

@jbergmann1

Thanks for your help, but the link did not work.

I am so confused and this is covered NOWHERE in Becker.

I’d assume a an AMT tax would <decrease> a shareholder’s basis, but only if he or she is liable for AMT for that year. Or, should I simply ignore it.

Thanks.

[jbergmann1]

I set it up wrong or something. But the point is just Google it it is he first thing that shows up. AMT basis and regular tax basis and book basis are three different things.

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[Anonymous]

@jbergmann1

Thank you. When I googled it the first time I didn’t get a concise answer. I’ll try again.

Thanks for your help!!

[Author]

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