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I got a question about AMT credit.
I paid AMT for tax year 2012 for exercising incentive stock options. The exercise price was $.20 / share and the fair market value was $1.70 /share. The difference is $45000 (30000 * $1.20), which I paid AMT for.

When I am filing tax now for 2013, the software automatically calculated AMT credit of $6391.

Can someone explained to me what is this AMT credit, and why would I qualified for? Additionally, when I sell my stock, can I report cost at $1.70?

My taxable income for 2013 is about 15% lower than that of 2012. Not sure if that matters.


-M who knows very little about tax, and let alone AMT.
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