Does anyone know if there is anything in the works to increase the AMT Exemption amount from $45,000 (I think that is what currently applies to 2010)? Tax projections on several of our clients are showing they are in Alt Min. Thanks, Sandy
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End of Year
Sandy, seems like there are fire drills every year, where certain deductions and exemptions are set to expire and then are extended at the 11th hour. The higher AMT exemption could very well be one of those in 2010. It has been before.
There is economic reality versus political reality, and none of can predict how this will go. Even the Democrats, notorious for tax & spend, have traditionally been against the AMT because of its effect on the high-tax Blue states.
Last time the AMT exemption was on death watch they came in at the last minute to rescue it. Of course all they did was kick the can down the street a couple years. What is needed is a comprehensive overhaul of the AMT with inflation-indexing. If they had inflation-indexing when they began the AMT back in 1970, then this problem would have taken care of itself.
Haven't answered your question, of course, and I can't and neither can anyone else. All of us will be affected, but your state (and mine) will not feel the effect as badly as New Jersey, Massachusetts, etc. who not only have high income taxes but high property taxes as well. -
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Reinstating the 2009 limits, for 2010 AND FOR SUBSEQUENT YEARS (!) is in the proposed budget.......so maybe it's closer, maybe it's not.Comment
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Thanks
Appreciate the input. I did call my representative and his office did say "we are working on it" in what he called an "extender bill", but no idea of when something might happen.Comment
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I have a summary of HR 4213 which is the extender bill, but saw nothing about AMT patch in it. It may be in there, but I would think it would be of enough interest to list it in the major items.Comment
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