Note that any AMT
planning should involve multiyear projections, to determine both the regular tax and AMT
liabilities over a number of years and to decide what actions will provide the best results over the long run.
Taxpayers with business income frequently have AMT
adjustments related to depreciation or depletion deductions, gains or losses on the sale of business assets, and installment gains.
Congress was forced to "patch" the AMT
by raising the exemption amount to prevent middle-class taxpayers from being hit by the tax.
was a completely new technology and untested yet in this market.
show how the large AMT
exemption's phaseout, at a rate of 25% as AMT
income exceeds certain levels, leads the nominal AMT
MTR of 26% or 28% to be effectively 25% higher -- 32.
In addition to creating a one-year AMT
patch, that version of the bill extended several expiring tax provisions for one year and provided offsets primarily by taxing the income of private equity managers, venture capitalists, and certain real estate investors at ordinary income rates, instead of at the lower capital gains rate.
w]hile approximately 4 million taxpayers were subject to AMT
in 2006, it is projected that in 2007, absent a change in law, 23.
The taxpayer argued that the prohibition against carrying back capital losses to a previous year and the $3,000 deduction limitation on capital losses applied only to the regular tax computation, not the AMT
We hope this will encourage the talented writers among us to send in their best work, whatever length suits it best, and that future issues of AMT
will have a more varied "rhythm" as a result.
Taxpayers that have to pay AMT
most likely lose their deductions, leaving them with nothing to offset their tax liabilities.
1% of all individuals; the number of taxpayers facing potential AMT
liability is expanding exponentially due to "bracket creep" caused by inflation and the growth in incomes and by the classification of commonly used exemptions land deductions as "tax preferences.
was enacted to make it harder for very wealthy people to avoid taxes.