Ideas to help AMT?

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  • JG EA
    Senior Member
    • Jul 2005
    • 2176

    #1

    Ideas to help AMT?

    I think I've asked this question before but can't find it. Anyway someone with a huge 2% deduction gets no benefit from it because of AMT. He wants to write off an SUV on a 2106 and I explained it won't help him at all on the Federal. He wants ideas. Income is too high for IRA's , etc. He can donate to charity of course, but aside from that I think it just is what it is. Any ideas?
    JG
  • Gary2
    Senior Member
    • Aug 2010
    • 2066

    #2
    Get the employer to establish an accountable plan and reimburse the expenses - even if it means taking a salary cut in exchange. Employer takes on the risk of higher than anticipated travel expenses, plus the bookkeeping costs, but otherwise it's a win-win.

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    • JG EA
      Senior Member
      • Jul 2005
      • 2176

      #3
      Good Idea. Thanks.

      My client was so excited about this idea that he is taking it to management. Thanks so much. If they agree it will same him thousands of dollars in taxes.
      Last edited by JG EA; 12-06-2011, 03:53 PM.
      JG

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      • OtisMozzetti
        Senior Member
        • Dec 2007
        • 530

        #4
        Originally posted by Gary2
        Get the employer to establish an accountable plan and reimburse the expenses - even if it means taking a salary cut in exchange. Employer takes on the risk of higher than anticipated travel expenses, plus the bookkeeping costs, but otherwise it's a win-win.
        Maybe I don't understand accountable plans, but I don't see any reason that travel expense reimbursements could not be limited to the amount which the employer anticipates (in order to avoid the risk of higher than anticipated travel expenses).
        Last edited by OtisMozzetti; 12-19-2011, 01:45 PM.

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        • Gary2
          Senior Member
          • Aug 2010
          • 2066

          #5
          Originally posted by OtisMozzetti
          Maybe I don't understand accountable plans, but I don't see any reason that travel expense reimbursements could not be limited to the amount which the employer anticipates (in order to avoid the risk of higher than anticipated travel expenses).
          That hadn't occurred to me. I don't know the answer.

          Comment

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