This thread is created for discussing Alternative minimum tax.
Since the AMT levels will be back to original,what are your thoughts on :
1.How to determine if you will be under the AMT bracket
2. Investment methods to avoid AMT
Alternative minimum tax
Alternative minimum tax
snaidu;35869This thread is created for discussing Alternative minimum tax.
Since the AMT levels will be back to original,what are your thoughts on :
1.How to determine if you will be under the AMT bracket
2. Investment methods to avoid AMT[/quote]
What is AMT:
http://www.smartmoney.com/tax/filing/index.cfm?story=amt
Alternative minimum tax
I found that if u itemize the deductions then somehow u can avoid AMT. But as soon as u claim standard deductions then AMT comes in picture.
Alternative minimum tax
I need some advice from someone who understands alternate min. tax.
Me and my wife are both full-time employees making a decent living filing taxes jointly(NJ) .
We realise every year we pay a lot of federal taxes and have been struggling to find a way to lower our federal tax obligations. We recently purchased property in India and borrowed Home equity loans to take advantage of the interest expenses to claim deductions, in the hope to lower our tax amount.
I use a professional tax advisor/preparer; he informed me that the alternative tax prevents me from lowering my tax obligation. He calculates 2 types of taxes ? Taxes with itemized deductions and Alternate Min tax method. The tax I am liable for is the higher of the two, which is the one calculated by the Al Min tax method. I have been told that the Alt min tax exemption has been halved this year and I will indeed be paying higher taxes.
Do any of you experts have any suggestions or recommendations?
What else can be done in this situation? What kind of investments can be done to avoid paying high fed taxes?
Me and my wife are both full-time employees making a decent living filing taxes jointly(NJ) .
We realise every year we pay a lot of federal taxes and have been struggling to find a way to lower our federal tax obligations. We recently purchased property in India and borrowed Home equity loans to take advantage of the interest expenses to claim deductions, in the hope to lower our tax amount.
I use a professional tax advisor/preparer; he informed me that the alternative tax prevents me from lowering my tax obligation. He calculates 2 types of taxes ? Taxes with itemized deductions and Alternate Min tax method. The tax I am liable for is the higher of the two, which is the one calculated by the Al Min tax method. I have been told that the Alt min tax exemption has been halved this year and I will indeed be paying higher taxes.
Do any of you experts have any suggestions or recommendations?
What else can be done in this situation? What kind of investments can be done to avoid paying high fed taxes?
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Old-Spice2
- Posts: 1898
- Joined: Wed Jan 17, 2007 11:38 pm
Alternative minimum tax
>>Do any of you experts have any suggestions or recommendations?
>>What else can be done in this situation? What kind of investments can be done to avoid paying high fed taxes?
- Buy a home in US with high mortgage. Higher the mortgage larger the tax deduction (realtor language).
- Put the max in 401K and FSA
- lower your income. One of my friend did this, no joke. He went on vacation to India for 3 months to minimise his taxes for that year.
>>What else can be done in this situation? What kind of investments can be done to avoid paying high fed taxes?
- Buy a home in US with high mortgage. Higher the mortgage larger the tax deduction (realtor language).
- Put the max in 401K and FSA
- lower your income. One of my friend did this, no joke. He went on vacation to India for 3 months to minimise his taxes for that year.
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desihometown
- Posts: 314
- Joined: Sat Feb 10, 2007 4:38 am
Alternative minimum tax
I get hit by AMT every year. Not only do we pay 9% in CA income tax, if I itemize my fed tax and get dedcution for CA tax paid, WHAM, I get hit by AMT.
Its even more scrwey in the year I sell options.
Since we dont have a home in the US, the only thing we can do reduce AMT is by 401K contribution.
Any other tips ?
Its even more scrwey in the year I sell options.
Since we dont have a home in the US, the only thing we can do reduce AMT is by 401K contribution.
Any other tips ?
Alternative minimum tax
can anyone advice on how to not get hit by AMT other than the options given above? any investment strategies to overcome this issue?