Announcement

Collapse
No announcement yet.

Alternative Minimum Tax

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Alternative Minimum Tax

    I heard a lot of press coverage about the increasing number of individual returns that will be subject to the AMT. The numbers they talk about appear to be explosive over the next 5 years or so.

    All of us have (I think) some people who must pay the AMT. But other than general inflation, what is going to create this explosion in people subject to the AMT? Has there been some legislative change? What am I missing?

    Showing my ignorance, I suppose. Would appreciate hearing from you folks.

    Regards, Ron J.

    #2
    If memory serves and maybe someone will correct me but the child tax credit will no longer be applicable for amt.

    Comment


      #3
      Snag

      I have had clients that triggered the AMT most ofter for 2% Misc categories. However, I have also had clients that have triggered it for 179 deductions and several children.
      When this is the case do not forget to itemize.
      The itemized deductions that are allowed for AMT (like Mortgage Interest, over 10% medical, and charitable contributions) have reduced the amount owed. Since standard is not allowed at all it is often beneficial to force itemized deductions.
      Recently, I put in thier itemized $2000 charitable contributions and it saved them $1000 in tax.
      Last edited by JG EA; 01-23-2006, 01:02 AM.
      JG

      Comment


        #4
        AMT change

        Referring to TTB p. 1-4, the exemption amounts are decreasing for 2006.

        Comment

        Working...
        X