The latest news on the Alternative Minimum Tax
Good tax planning can help minimize some of the AMT impact. For example, one downside of the AMT is the possibility that you won't be able to benefit from common deductions, such as the deduction for property taxes. While the property tax deduction is available for those paying the regular income tax, it is not valid for taxpayers subject to the AMT. Let's say you believe you will be hit with the AMT in 2012 but not for current 2011 income. In that case, you should try to make your first property tax payment for 2012 late this year so that you can deduct it on your income tax form for 2011. In addition, if you are not subject to the AMT in future years, it may be possible to claim a credit for a refund of some of what you laid out in the years when you did have to pay AMT.
- Taxpayer Advocate report focuses on tax reform, collection issues, health care reform
- New tax legislation creates, renews many breaks
Reprinted from Texas Society of Certified Public Accountants and American Institute of Certified Public Accountants.
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