Let's say I paid 100k in 2017 in taxes because of stock excersice and got hit by AMT. After that a company went public, I hold my stocks for over a year and after selling it, my gain is 500k. It's a long term capital gain now. What's going to happen next tax year? Do I pay taxes again on 500k? Or on 500k minus the gain from last year? Or I only pay a tax difference i.e. (15% of 500k) - 100k payed last tax year? Thanks upfront.
When you paid 100k in taxes, there would have been a price, which can be, say 200k. Now, you subtract that from your current sale price and that's your actual gain and you pay 15% of that. You need a CPA to figure exact numbers.
Now that makes sense. Thanks. I just wanted to know the mechanics. 1. I also heard that you need to pay portion of that tax as soon as possible instead of waiting for April otherwise there might be a penalty. 2. Do you happen to know if AMT paid last year would be any help this year? Good CPA is as rare as a good engineer. Gotta get a referral, don't want to go to a random person as many of them aren't aggressive enough and give you shitty outcome at the end.
Uh what? This is basic for any CPA. Stop being cheap and just hire one.
You will have to pay taxes for your gains but I believe there’s a deduction you can apply from the AMT taxes you paid last year. Would recommend hiring an accountant tho