Stock Options are not the only thing that can get an honest guy snagged for the
AMT. Taxpayers must fill out form 6251 if they make over $22,500 and claim credits for:
Driving an
Electric Vehicle
Using a
solar panel (or any "
alterniative fuel") to generate
energy for their home
Large
medical deductions
You own a business (even
Avon or
Tupperware)
Inheriting money or assets
Claim intrest on a
second mortgage
So there must be some ajustment to make the AMT
fair right? Riiiiiiiiiight!
Oil drilling costs (and
Mr. Bush doesn't want to make the update of the AMT retroactive?)
Mining exploration and testing
Circulation expendatures (have any of those lately?)
The
spouse but not the
kids
The law was written in
1969, and modified in 1978, 1982, 1987, 1990 and 1993 - no wonder it's a little complicated. A good
rule of thumb is to meet with an
accountant (yes get an accountant) BEFORE the end of the calander year if you make over $75,000 per year. There are a few things you can do to your regular taxes that may lessen your total tab.
There is no official
IRS publication for taxpayers on the AMT, you can read the IRS auditor's instructions at http://www.irs.ustreas.gov/prod/bus_info/mssp/amt2.html.
Information from:
http://www.irs.ustreas.gov/prod/bus_info/mssp/amt2.html
http://www.fool.com/taxes/2000/taxes000915.htm
http://www.fairmark.com/amt/index.htm
and me, who got hit with AMT along with 3 million other Americans this year, and 8.4 million will by 2007.