There have been threads discussing whether a taxpayer would be better off simply taking the standard deduction than itemizing, when AMT adds back all those itemized deductions to income for AMT purposes.
The best answer appears that the taxpayer IS indeed better off, and at the very worst, suffers only a dollar-for-dollar net swap with the AMT add-backs.
However, what happens if itemized deductions are limited by virtue of high income? I've got a guy with $119,000 in itemized deductions, $116,000 of which are TAXES. However, because he made a ton of money, his itemized deductions phased down to $90,000.
Is this STILL a dollar-for-dollar net swap even after the phaseout?
The best answer appears that the taxpayer IS indeed better off, and at the very worst, suffers only a dollar-for-dollar net swap with the AMT add-backs.
However, what happens if itemized deductions are limited by virtue of high income? I've got a guy with $119,000 in itemized deductions, $116,000 of which are TAXES. However, because he made a ton of money, his itemized deductions phased down to $90,000.
Is this STILL a dollar-for-dollar net swap even after the phaseout?
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