In the California State Tax Return 540 where do I enter the AMT cost basis adjustment for shares previously acquired from ISO?

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March 30, 2020
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In the California State Tax Return 540 where do I enter the AMT cost basis adjustment for shares sold that have Excess of AMT Income over Regular Tax income.

In 2011 I exercised an ISO (Incentive Stock Option) and acquired shares in a company.

In the 2011 Tax Return (Federal and California) I reported and paid additional California State AMT Tax due to the difference between the option strike price and FMV (Fair Market Value) of the shares at time of exercise.

In 2019 I sold those shares and I need to report the AMT cost basis adjustment in the California State Tax Return 540.

I know how to do it for Federal Tax Return 1040. I use "Form 6251 - line k Disposition of property (difference between AMT and regular tax gain or loss)"

In the California State Tax Return 540 Form p(540) there is NO line for "Disposition of property (difference between AMT and regular tax gain or loss)"

In the California State Tax Return 540 Form p(540) where do I enter the AMT cost basis adjustment for shares previously acquired from ISO?

Thanks

DaveF1006

I found this this link in the Turbo Tax pro-Series website that is germane to your situation. See if this helps. Here is a summary of the link.

Line 9 – Adjusted gain or loss

You will have an entry on this line only if you reported a gain or loss on California Schedule D (540) or Schedule D-1, federal Schedule D, federal Form 4797, or federal Form 4684, Casualties and Theft, for income producing property that has a different basis for AMT than for regular tax. Generally, if you reported a gain or loss from the sale or exchange of mutual funds, stocks, or bonds, you will not have an entry on this line.

To figure the amount to enter on this line:

Step 1 – Refigure the adjusted basis of the asset sold. Take into account any AMT adjustments you made this year or in previous years for depreciation, incentive stock options, circulation expenditures, pollution control facilities, research and experimental expenditures, and mining costs.

Step 2 – Refigure your gain or loss using the adjusted basis from Step 1.

Step 3 – Figure the difference between the AMT gain or loss and the regular tax gain or loss and enter the result on line 9. Enter the difference as a negative amount if: the AMT gain is less than the regular tax gain; the AMT loss is more than the regular tax loss; or you have an AMT loss and a regular tax gain.

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