TITLE

Is the Alternative Minimum Tax Sneaking Up on Your Clients?

AUTHOR(S)
Welch, Julie A.; Gardner, Randy; Meara, John W.
PUB. DATE
October 2004
SOURCE
Journal of Financial Planning;Oct2004, Vol. 17 Issue 10, p34
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This article discusses the concept of the alternative minimum tax (AMT) and its impact on taxpayers in the U.S. as of October 1, 2004. The AMT is currently the most serious problem encountered by taxpayers. The AMT is an alternative to the regular tax. After calculating the tax under the regular tax rules, one must then calculate the tax under the AMT rules. The purpose of the AMT is to ensure that people with large amounts of income and deductions pay at least a minimum amount of tax. The AMT is calculated in the same fashion as regular taxable income, but without many regular tax deductions and exemptions. Notably absent are deductions for state and local income taxes, real estate and personal property taxes, Miscellaneous itemized deductions, accelerated depreciation and depletion, and personal exemptions. In addition, AMT taxpayers must add back other items, such as tax-exempt interest income from certain bonds and certain gains from exercising incentive stock options. In 2010, the AMT is currently projected to affect almost 32 million people. The AMT no longer targets just wealthy taxpayers. Recent tax cuts in the regular rates have caused the AMT to sneak up on millions of unsuspecting taxpayers.
ACCESSION #
14706829

 

Related Articles

  • THE STANDARD DEDUCTION OR ITEMIZED? MASON, RICHARD; PIPPIN, SONJA // Strategic Finance;Dec2015, Vol. 97 Issue 12, p14 

    The article focuses on interaction between the alternative minimum tax (AMT) and the choice between itemized deductions and the standard deduction. Topics discussed include dependence of the amount of the standard deduction on the taxpayer's filing status; payment of the higher of the two...

  • Congress must develop alternative to messy AMT.  // Westchester County Business Journal;1/9/2006, Vol. 45 Issue 2, p34 

    The article focuses on the Alternative Minimum Tax (AMT) program in Westchester, New York. The AMT affects taxpayers making more than 75,000 dollars in household income or taxpayers taking lots of deductions. The number of people subject to AMT has increased from nineteen thousand to three...

  • The Alternative Minimum Tax. Greenberg, Dean // Inside Tucson Business;2/16/2004, Vol. 13 Issue 33, p8 

    Explains the Alternative Minimum Tax (AMT). Regulations governing AMT; History of the AMT; Individuals affected by the AMT; Explanation on the progressive federal tax system.

  • NOL and AMT NOL from single year can't be carried to different years.  // Practical Accountant;May95, Vol. 28 Issue 5, p18 

    Presents a case which depicts the US Internal Revenue Code Section 172 which covers net operating loss (NOL) and alternative minimum tax (AMT) NOL. Case background; Description of the rule's provisions.

  • Alternative Minimum Tax: An Overview of Its Rationale and Impact on Individual Taxpayers: GGD-00-180.  // GAO Reports;8/15/2000, p1 

    This report is a nontechnical primer on the alternative minimum tax (AMT) for individuals, which is extended to help ensure that high-income individuals do not avoid significant tax liability. AMT is a separate tax system that parallels the regular individual income tax system. The Department of...

  • Tax Reform Panel Members Poised to Recommend AMT Repeal. McConnell, Alison L. // Bond Buyer;10/19/2005, Vol. 354 Issue 32241, p30 

    Recommends the elimination of individual and corporate alternative minimum tax (AMT) tax reform panel members in the U.S. Basis in AMT cancellation; Enhancement in the demand for private-activity bonds; Reason behind the support of municipal bond groups in repeal of the tax.

  • Deducting Interest Paid.  // CPA Client Bulletin;Feb2016, p1 

    The article focuses on reducing the interest paid for taxes. Topics discussed include itemized deductions in interest paid by using mortgage interest debt; use of home equity debt for reduction of interest; alternative minimum tax (AMT) rules for deducting mortgage interest; and role of...

  • Alternative Minimum Tax.  // World Almanac & Book of Facts;2008, p384 

    An almanac entry for the Alternative Minimum Tax (AMT) in the U.S. is presented. The Alternative Minimum Tax (AMT) was established in 1969 to prevent people with very high incomes from using special tax breaks to pay little or no tax. Because of changes in the tax law, this tax now affects more...

  • Numbers Game. Doherty, Brenda S. // BusinessWest;3/19/2007, Vol. 23 Issue 23, p30 

    The article presents information on alternative minimum tax (ATM) that was originally enacted to prevent tax evasion of high-income taxpayers in the U.S. in the form of several deductions. AMT was introduced in 1969 based on a report by secretary of the U.S. Treasury regarding tax evasion. Under...

Share

Read the Article

Courtesy of VIRGINIA BEACH PUBLIC LIBRARY AND SYSTEM

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics