ATX Users RE: Alt Min Tax

[JenMO]

I have a client that got a big payoff on his installment note. We did an installment to avoid AMT and keep $$ in lower tax bracket, but buyer paid off 3 months into the second year. Now we have a AMT tax liability. I don't like and don't understand AMT very well. Can I count on ATX software to carry the correct figures to the 6251? I've looked over and don't think I have any tax preferences. Most of the money went to land and a small percentage is unrecap 1250 gain. Any help, recommendations, things to look out for? Thanks

[DonPriebe]

ATX and AMT

The first thing to look out for is the fact that ATX doesn't load the 6251 form automatically. You have to manually add it to the return.

[JenMO]

I have the 6251 in the return, I just wondered if most of the figures flowed to it automatically and if there are any other figures I need to look for or put in?

[George Boutwell]

Avoid Crash Landings

Relying on software to calculate AMT, when you aren't confident in your ability to fill out the Form 6251 otherwise, is like trying to fly an airplane using only instruments when you haven't quite learned how to do it under visual flight rules. Remember that the programmers often are people who go to H&R Block to prepare their own returns, so don't expect accuracy and you won't be disappointed.

What I am finding this year is that even clients with no AMT adjustments, but with large capital gains, are paying AMT (even though AMT gives them the preferable, lower tax rates also). I just finished a return with about $400K AGI and about $285K LTCG and qualifed dividends, claiming standard deduction and with no AMT preferences. AMT is $11K.

[cpadan]

I set ATX to load 6251 automatically. As far as your clients situation, just go through the top portion of the form line by line and you will see which items triggerd AMT tax. My advice is not to rely on the software.
Dan

[iratax]

Atx

I use ATX and check the 6251 because I was burnt one time when it didn't add it automatically. I find it is pretty accurate but I still don't trust it 100%.