23 Million More Americans Are Going to Have to Pay AMT This Year
AMT Strategy #2: Learn all you can about AMT. Change your vocabulary to include AMT issues. A couple of AMT vocabulary words you’ll want to pick up are Preference Items and AMTI.
A preference item is the exact opposite of something you prefer…in fact, it’s something you don’t want at all. These are the deductions that you can take on your personal return, but that you can’t take when you calculate AMT. AMTI is your Alternative Minimum Tax Income and is something like the concept of taxable income…only in this case items that you would expect to be tax free (like Tax Free bond income) that aren’t.
I’ve been railing about AMT for quite a few months now and I feel like I owe you an apology. Although DKA and DKAffiliated (my CPA firm and our affiliated CPA firms) is the only CPA firm with a system to actively educate and prepare our clients to beat AMT strategies, I haven’t yet released a tax education product about it. That’s because I never really believed that Congress would let the worst happen. It just didn’t seem possible that we’re on track for 1 out of 5 taxpayers paying AMT in the near future. I was so sure that Congress would act to kill this monster tax that I didn’t want to put the time into creating new educational products about AMT. Well, the worst is coming true – AMT is here to stay, for at least one more year.
We’ll have a brand new, hot off the press AMT Home Study Course available by11/30 – it’s been delayed as we wait to see what happens with the latest round of bills through Congress. And while we don’t have much time this year to reduce the affect of AMT, there is a narrow window left.