Thursday, March 15, 2007

Do You Owe the AMT? IRS Website to Help You Find Out

If I were asked to design the AMT it would be something simple like:

1. Is your AGI over 150,000? (indexed for inflation)
2. If yes, multiply AGI times 20% (or whatever % is reasonable)
3. If your regular tax is less than AMT, use AMT.

The AMT we have now is a completely separate tax code with it's own depreciation rates, foreign tax credits, itemized deductions, etc. etc., ad nauseum. It's a hateful code that most tax professionals hate.



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