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Some prior-year MTCs will be refundable beginning in 2007.

Publication: The Tax Adviser
Publication Date: 01-OCT-07 		Format: Online
Delivery: Immediate Online Access
Full Article Title: Some prior-year MTCs will be refundable beginning in 2007.(minimum tax credits)

Article Excerpt
A growing number of individual taxpayers have been subject to tax under the alternative minimum tax (AMT). Sec. 53(a) provides a minimum tax credit (MTC) for AMT paid in prior years that was attributable to deferral adjustments. The MTC is carried forward to offset regular tax liability in future years. Frequently, however, little or none of the MTC is allowable because in subsequent years the individual's tentative minimum tax under Sec. 55(b) is close to (or exceeds) the individual's regular tax.

Some individuals have Large amounts of MTC, frequently caused by AMT resulting from the exercise in past years of incentive stock options (ISOs). Many of those taxpayers exercised their ISOs and paid significant AMT in the year of exercise but were caught in the "tech bust" of the early 2000s and saw the value of the exercised shares plummet so quickly that they were lucky to receive enough in the shares' sale proceeds to cover the...

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