During the bubble, I had some ISOs in a company that was acquired. 
When these ISOs were converted, they triggered an Alternative Minimum
Tax liability.  I paid AMT taxes on the shares at $47/share
(approximately 28%) as a payment to the government on my 2001 return.

I continued to hold onto the shares and watch them drop.  I finally
sold them in 2002 for approximately $5/share, with a basis in the
shares of about $3.50/share.

So, I have this rather large AMT credit sitting out there, clipping
away against relatively small capital gains in the stock market.  Are
there any strategies to get a large chunk of it back?  I'd love to
have those dollars to reinvest into real estate or other types of
investments, instead of sitting "in" the government collecting no
interest.

I am looking for suggestions as to ways to get significantly more of
the AMT credit back.  Does anyone have any good suggestions?  Anyone
that provides me with an answer that my tax prep guy says will work
will get the payment, and a debt of gratitude that I can't begin to
express.

William

I exercised 60,000 ISOs in 2000 at a spread of $28. I sold them in
2001 at $3/share.

I was taxed at the fairmarket value of $28.80, a little over $400,000.
I realized just $85,000 in captial gains, but still owe $400,000 in
taxes. The AMT BLOWS.

I am trying to do an offer in compromise, but it isn't going well,
they still want more than I ever made on that stock.

If you can bear it, consider bankruptcy on that tax. The problem is 3
years have to have passed since your filing date, and if at any time,
you start an OIC, that timer stops.

Your situation is much like any other - how do I get that friggin
money back. The short answer is there is no way to currently. A group
called ReformAMT is trying to get legislation passed that can get
credits paid back faster than 7 years. Check out
http://www.reformamt.org .

Good luck to you.

you should get a credit for AMT in the year stocks were sold -ie 2002.
It will adjust your base in 2002 transaction to turn it into the loss
if you didn't do so, there is still time to amend 2002 return - three
years starting from due date 04/15/2003, that will last till
04/15/2006.
wish you good luck.