They say that 2007 is the year of change, at least according to the Chinese calendar. I don’t know about you, but it’s been a year of big changes in my business life and with a teenager in the house, nothing seems to stay the same for very long in the house either. And now we have a brand change looming on the tax horizon. In this case, though, it’s not something new…it’s something old that should have gotten fixed, and didn’t.
I’ve been talking about it, blogging about it, teaching about it, strategizing about it…but to be honest, I never though it would come to this. It’s really going to happen.
Five MILLLION Californians Are Going to Learn About AMT the Hard Way This Year
How much is it going to cost you? Well, it depends. Currently if you make over approximately $44,000, you’re going to have to calculate whether AMT (Alternative Minimum Tax) is an issue for you. But, unless you’re subject to one of the Big AMT Triggers, you won’t have AMT unless you make over $100,000. By the way, a high state income tax rate (like in California or New York) is an AMT trigger. So is selling an investment and getting capital gains treatment.
Over the next week, I’m going to be sharing some of the strategies to beat AMT. Keep checking back on the Tax Loopholes blog.