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| | Alternative Minimum Tax - Wikipedia, the free encyclopedia |
 | | AMT is not a tax on profits, but a tax on "fake profits". | | | The TMT is compared to the income tax amount calculated for the taxpayer. | | | The portion of the tax which is considered AMT may be available in later years as a "Minimum Tax Credit", reducing the regular income tax due in later years, but only to the taxpayer's TMT level in those later years. |
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http://en.wikipedia.org/wiki/Alternative_Minimum_Tax
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| | Alternative Minimum Tax |
| | Alternative minimum tax for the year is the excess of tentative minimum tax over regular tax liability. | | | For corporate taxpayers, the tentative minimum tax for the tax year is 20 percent of the excess of AMTI over the $40,000 AMTI exemption amount, reduced by the alternative minimum tax foreign tax credit. | | | Corporations that qualify for the exemption and that have unused minimum tax credits that would otherwise offset regular tax in excess of tentative minimum tax will be able to use the minimum tax credits for up to 75 percent of regular tax. |
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http://www.lyster.com/lysteronlaw/asinine_tax_laws/amt.htm
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| | Alternative Minimum Tax |
| | The AMT is payable to the extent it exceeds your regular tax liability. | | | If your tentative minimum tax exceeds your regular tax, you have a net AMT liability and are liable for both your regular tax and the net AMT liability. | | | The resulting figure (tentative minimum tax) is compared with you regular tax liability. |
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http://www.taxabc.com/amt1.htm
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| | The Alternative Minimum Tax |
| | AMT liability is the excess, if any, of precredit tentative AMT liability over regular precredit tax liability. | | | As inflation erodes the value of the AMT exemption, more of their income is subject to the alternative tax. | | | Even though the AMT is technically the excess of AMT over regular tax liability, taxpayers effectively calculate their taxes under two systems and pay the higher of the two liabilities. |
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http://www.cbo.gov/showdoc.cfm?index=5386&sequence=0
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| | US CODE: Title 26,55. Alternative minimum tax imposed |
| | For purposes of this section, the term “regular tax” means the regular tax liability for the taxable year (as defined in section 26 (b)) reduced by the foreign tax credit allowable under section 27 (a), the section 936 credit allowable under section 27 (b), and the Puerto Rico economic activity credit under section 30A. | | | In the case of a taxpayer whose tentative minimum tax for any taxable year is zero by reason of paragraph (1), section 53 (c) shall be applied for such year by reducing the amount otherwise taken into account under section 53 (c)(1) by 25 percent of so much of such amount as exceeds $25,000. | | | If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence). |
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http://www.law.cornell.edu/uscode/26/55.shtml
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| | ALTERNATIVE MINIMUM TAX |
| | What constitutes “alternative minimum taxable income?” Generally, it is your adjusted gross income as determined for regular income tax purposes increased by certain tax preference items and decreased by certain itemized deductions. | | | As a result of tax reform, planning for the alternative minimum tax takes on greater importance for a greater number of taxpayers. | | | The purpose of the Alternative Minimum Tax (AMT) is to ensure that everyone pays a fair share of tax. |
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http://www.concordeplanning.com/newsletter/altmintax.htm
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| | Alternative Minimum Tax - House Research |
| | The theory underlying the federal and state alternative minimum taxes is to require taxpayers who benefit heavily from some tax preferences to pay a minimum amount of tax relative to their incomes. | | | The federal alternative minimum tax was first enacted in 1969, the state AMT in 1977. | | | Both taxes follow the model of requiring taxpayers to compute a tentative tax liability under an second tax structure. |
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http://www.house.leg.state.mn.us/hrd/issinfo/amttax.htm
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| | Key Points on the Alternative Minimum Tax |
| | Repealing the AMT in 2005 would reduce revenues by $660 billion through 2014 if the 2001 tax cut expires as scheduled in 2010, and about $1,090 billion if the tax cut is extended. | | | The AMT grew out of a minimum tax that was first enacted in 1970 after it was revealed that some high-income households had paid no income taxes in prior years. | | | The expansion occurs because the AMT is not indexed for inflation and because of the 2001 tax cut. |
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http://www.brookings.edu/views/op-ed/gale/20040121amt.htm
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| | THE ALTERNATIVE MINIMUM TAX FOR INDIVIDUALS: A GROWING BURDEN |
| | The minimum income tax was an "add-on" tax of 10 percent. | | | Simplifying means reducing tax rates, which reduces the influence of tax considerations on economic decisions; and broadening the tax base by reducing exemptions, deductions, and tax credits. | | | The AMT and its predecessor, the minimum tax, were enacted in an attempt to target a tiny number of high-income taxpayers. |
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http://www.house.gov/jec/tax/amt.htm
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| | USATODAY.com - Alternative minimum tax is nipping at middle-class heels |
| | Alternative minimum tax is nipping at middle-class heels | | | While the AMT rate is lower than standard income tax rates — 26% to 28%, depending on income — the loss of deductions and exemptions will result in a higher tax bill. | | | IRS computers can calculate taxpayers' AMT liability, allowing the agency to identify individuals who owe the tax without the expense of an audit. |
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http://www.usatoday.com/money/perfi/columnist/block/2003-02-24-ym_x.htm
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| | Alternative Minimum Tax 101 |
| | The alternative minimum tax (or AMT) is an extra tax some people have to pay on top of the regular income tax. | | | The result of this calculation is the amount of income tax you would owe under this "alternative" system of tax. | | | Some things that can contribute to AMT liability are mundane items that appear on many tax returns, such as a deduction for state income tax or interest on a second mortgage, or even your personal and dependency exemptions. |
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http://www.fairmark.com/amt/amt101.htm
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| | FAQ on the Alternative Minimum Tax |
| | If the tax calculated on Form 6251 is higher than that calculated on your regular tax return, you have to pay the difference as Alternative Minimum Tax. | | | The AMT expands the amount of your income that can be taxed, adding items that were tax-free under the regular tax system, and disallowing many deductions. | | | Regular tax brackets and regular tax personal exemptions are indexed for inflation each year to prevent bracket creep, an automatic upward shift in the marginal income tax bracket through inflation. |
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http://www.turbotax.com/articles/FAQontheAlternativeMinimumTax.html
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| | Tax Talk: The alternative minimum tax's Catch-22 |
| | The principal differences between tax deductions for regular tax and for AMT are taxes and miscellaneous itemized deductions such as investment and employee business expenses. | | | Once you have so much in taxes and miscellaneous deductions that it puts you into an AMT position, you don't have to bother looking for more of these deductions as they don't help reduce your tax liability. | | | Originally designed to make higher income taxpayers pay a minimum amount of tax, the AMT is now affecting more and more middle-class families. |
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http://www.bankrate.com/brm/itax/tax_adviser/20050308a1.asp
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| | Alternative Minimum Tax |
| | It is a separate tax computation that, in effect, eliminates many deductions and credits and creates a tax liability for an individual who would otherwise pay little or no tax. | | | For 2003, the exemption amounts for figuring the AMT have increased. | | | Taxpayers who benefit from these provisions of the law may have to pay an additional tax called the alternative minimum tax. |
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http://www.irs.gov/newsroom/article/0,,id=107843,00.html
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| | NCPA - Tax Issues - Alternative Minimum Tax Snaring More Taxpayers |
| | The AMT applies a 26 percent or 28 percent tax rate to total income for those taxpayers who would have $45,000 or more in exemptions and deductions under the personal income tax. | | | The AMT generates $6.6 billion in federal revenues -- less than 1 percent of all individual income tax revenue. | | | Experts say the middle class has been drawn into the realm of alternative minimum taxes due to the 1986 tax reform act, which required treating many exemptions like tax shelters for the wealthy, and inflation. |
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http://www.ncpa.org/pi/taxes/pd011299h.html
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| | Get ready for the alternative minimum tax |
| | Meanwhile, taxpayer advocate Olson says taxpayers who might owe the alternative minimum tax can expect to pay a higher tax bill and spend an extra 12 hours preparing their 2003 taxes. | | | The tax breaks President Bush and Congress enacted since 2001 expanding child tax credits, "marriage penalty" relief and the like make it more likely taxpayers who try to claim these write-offs will owe the alternative minimum tax. | | | The alternative tax has been on the books since then, never indexed to inflation the way regular income taxes have been since 1981. |
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http://seattlepi.nwsource.com/money/157001_taxssnag17.html
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| | The Dark Side: The effects of the alternative minimum tax have actually gotten worse. |
| | The AMT tax rates are 26% for AMT taxable income of up to $175,000 and 28% for AMT income above that. | | | The AMT credit does not apply to items like state tax deductions and exemptions for childrenthose are lost. | | | Although the AMT tax rate is lower than the regular tax rate, it's still expensive because it is based on a higher income base. |
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http://www.financial-planning.com/pubs/fp/20031101027.html
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| | Massive tax increase may hit millions next year - Personal Finance - MSNBC.com |
| | The amount of the tax would vary among affected individuals and families, depending on the state in which the taxpayer resides, marital status and number of children. | | | The new year means the expiration of a temporary fix that prevents the alternative minimum tax from hitting millions of people this year on taxes due next April. | | | But if Congress doesn't act, the additional tax will return for the 2006 tax year. |
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http://www.msnbc.msn.com/id/10347124
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| | Alternative minimum tax |
| | If the option "Federal additional tax paid for AMT" is chosen, the amount entered should be the additional federal alternative minimum taxes paid in that year. | | | If the option "Federal minimum tax carryover applied" is chosen, the amount entered should be the federal minimum tax carryover from line 427 of schedule 1. | | | They are required for the calculation of the Ontario minimum tax carryover on schedule T1219. |
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http://www.drtax.ca/eng/kb/new/keywords/t1/g400.htm
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| | ALTERNATIVE MINIMUM TAX |
| | The AMT calculation is one that every individual must work through, in addition to the calculation of tax under normal rules. | | | The final tax due is the larger of that calculated under both sets of rules. | | | If AMT is caused by excessive State and Local Tax deductions, and these payments are made via quarterly estimates, make sure you pay your fourth quarter state and local estimates in January of the following year instead of December of the current year. |
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http://www.msco-cpa.com/amttips2.htm
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| | Alternative Minimum Tax |
| | These credits are the child tax credit, the dependent care credit, the credit for the elderly and disabled, the adoption credit, the credit on certain home mortgages, the Hope and Lifetime Learning credit, the IRA credit and the D.C. homebuyer's credit. | | | If these taxpayers have any credits that reduce their regular tax below the AMT tax, additional taxes would be due and the benefit of these credits would be lost. | | | If married taxpayers file a tax return with a positive income greater than $45,000 they could be subject to this tax. |
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http://www.newlandcpa.com/02-11_alternative_minimum_tax.htm
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| | Alternative Minimum Tax Estimator - Tools - Taxes - H&R Block |
| | This tax tool is provided "AS IS." There is no warranty of any kind regarding the accuracy or completeness of this tool or your results, and the user assumes all risk of use. | | | An estimated 2.1 million taxpayers were affected by the alternative minimum tax (AMT) in 2001. | | | Use of this tool for any other purpose, such as preparation of a federal income tax return, is not authorized. |
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http://www.hrblock.com/taxes/tools/amt
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| | The Alternative Minimum Tax (Tax Guide: Personal Finance) SmartMoney.com |
| | That's because you could be eligible for the so-called minimum tax credit, which allows you to claim a credit on your tax return in future years for some of the extra taxes you paid under AMT rules. | | | While the "regular" tax brackets, exemptions and standard deductions are adjusted annually for inflation, the AMT brackets and exemptions are not, so many people whose income has grown with the economy enter the dreaded AMT zone each year. | | | And because you're taxed on the spread on your incentive stock options, your tax basis for the shares you bought is higher under the AMT, meaning your tax bill will be lower when you sell the shares. |
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http://www.smartmoney.com/tax/filing/index.cfm?story=amt
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| | Alternative Minimum Tax Repeal: CTJ Analysis |
| | The corporate alternative minimum tax (AMT) was established in 1986 to try to assure that profitable corporations pay at least something in income taxes no matter how many tax breaks they otherwise take advantage of. | | | Including the AMT, these 23 companies paid only 10.1 percent of their $20.5 billion in pretax U.S. profits in income taxes in 1998. | | | Repealing the corporate AMT and thus eliminating taxes on some of our wealthiest corporations would be both unfair and grossly insulting to America’s hardworking, taxpaying families. |
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http://www.ctj.org/html/amt0901.htm
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| | Morningstar.com - Are You Vulnerable to the Alternative Minimum Tax? |
| | Notably, the AMT and regular tax systems differ in what they consider taxable income--for example, the AMT system taxes income from private-activity bonds (municipal bonds used to fund sports arenas and the like), whereas municipal-bond income is wholly tax-exempt under the regular tax system. | | | The AMT was originally created in 1969 to ensure that wealthy individuals who had managed to skirt taxes under the conventional tax system didn't avoid paying taxes altogether. | | | In addition, certain credits, exclusions, and deductions that are available to you when calculating your regular tax liability are not usable for the purposes of calculating your AMT liability, and vice versa. |
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http://news.morningstar.com/doc/article/0,,146256,00.html?pgid=wwhome1a
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| | Alternative Minimum Tax |
| | The only people who pay income taxes who wouldn't benefit from President Bush's tax-cut proposal are those who are hit by the dreaded alternative minimum tax. | | | The time for tax planning is before the year ends. | | | The alternative minimum tax holds traps for the unwary. |
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http://www.mystockoptions.com/Articles/index.cfm?catid=1
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| | Alternative Minimum Tax |
| | Alternative Minimum Tax is aimed at people who have a large dollar volume of capital gains, accelerated depreciation, option exercises, and intangible drilling costs (I'm not making this up). | | | The equity of taxing people on a gain which another part of the law says is not to be realized for at least another year (and yet another says can't be realized without going to jail) is self-evident, so I won't explain it. | | | If this exceeds your normal tax, this is what you pay; otherwise (the great majority of cases) you merely report it and pay the normal tax. |
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http://www.fourmilab.ch/autofile/www/section2_34_3.html
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| | Rod D. Martin: Abolish the Alternative Minimum Tax |
| | Finally, as it gathers steam, AMT is costing our nation more and more, not only in lost productivity, but also in the counterproductive waste of time and money millions more Americans must spend either attempting to comply with its requirements or hiring accountants to do so. | | | Concocted in 1969, AMT requires both wage earners and businesses to re-compute their tax deductions if the IRS deems these deductions “too numerous” relative to income. | | | In my continuing series on the need for a flat tax system for America, I've identified five essential reforms to help us break away from our current system of tax oppression and wealth confiscation. |
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http://www.thevanguard.org/thevanguard/columns/040405.shtml
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| | Panel urges ending alternative minimum tax - Personal Finance - MSNBC.com |
| | The consensus to repeal the alternative minimum tax means the panel must replace the $1.2 trillion that the Treasury Department expected to collect through that tax over the coming decade. | | | The groups are studying ways to simplify tax laws, adjust current tax laws and replace the tax system in whole or in part. | | | Those affected must calculate their tax twice, under the regular tax system and then the alternative system, and pay the higher amount. |
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http://www.msnbc.msn.com/id/8646748
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| | USATODAY.com - Panel suggests repealing alternative minimum tax |
| | The tax panel did not determine how to recoup the $1.2 trillion that AMT repeal would cost in lost tax revenue over the next decade. | | | The AMT was created in 1969 after a report showed that 155 people with incomes above $200,000 — about $1.2 million in today's dollars — had paid no income tax in 1966. | | | Bush noted in February that a growing number of Americans "have to calculate their tax burden twice, once under the regular tax rules, and once for the alternative minimum tax. |
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http://www.usatoday.com/money/economy/2005-07-20-tax-overhaul_x.htm
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| | NCPA - Daily Policy Digest - Here Comes the Alternative Minimum Tax |
| | The alternative minimum tax is a highly complex, separate system for calculating your taxes. | | | About 3.3 million taxpayers will owe additional taxes next year because of the AMT -- up 27 percent from this year -- and more than triple the number in 1998, according to new Treasury Department statistics. | | | Unless Congress overhauls the law, the tax's growth over the next decade will be explosive. |
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http://www.ncpa.org/iss/tax/2003/pd121803a.html
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| | Alternative Minimum Tax Fix? No Rush - Forbes.com |
| | As Olson and her Treasury economists surely know, if the tax changes Bush did propose this year are adopted, fixing the AMT will--according to Congress' 10-budget accounting rules--become even more difficult, not less. | | | Largely as a result of the tax cuts of 2001 and 2003, the AMT is now poised to devour the middle class. | | | That's because Bush's top tax priority is to make permanent various provisions of the 2001 and 2003 tax cuts which are set to expire between 2005 and 2011. |
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http://www.forbes.com/personalfinance/taxes/2004/02/03/cz_jn_0203amt.html
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| | Alternative Minimum Tax |
| | Section 55: calculate alt tax on alt income: | | | "the minimum tax credit for any taxable year is the excess (if any) of-- | | | Only get the "alternate minimum foreign tax credit" |
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http://userwww.sfsu.edu/~rdaniels/811week15.sp98.htm
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| | Accounting, Tax and Technology |
| | Also included is information on the accounting, financial, tax and computer services we provide and examples of our clientele. | | | This site contains detailed tax information to help taxpayers with their 2004 taxes and tax planning for 2005 and beyond. | | | Included is information on new tax laws, tax planning advice for individuals and business, insight into technical issues affecting all of us, and even a Roth IRA Calculator to help you determine if opening a Roth IRA or converting a regular IRA is beneficial. |
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http://www.msco-cpa.com
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| | Guide to the Alternative Minimum Tax (AMT) |
| | The alternative minimum tax is a large and complicated subject. | | | The alternative minimum tax affects a small but growing percentage of taxpayers. | | | Explains why you may run into alternative minimum tax liability when you have a large long-term capital gain — and what you can do about it. |
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http://www.fairmark.com/amt
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| | Reform AMT - Home Page |
| | Through the building of a grassroots tax reform organization we seek to urge Congress to correct this flawed tax code, which has resulted in financial devastation for taxpayers obeying this law. | | | Taxpayers whipsawed by the AMT now have forum to assert claims for tax refunds and tax abatements! | | | New bill HR 3385 is introduced to refund AMT credits. |
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http://www.reformamt.org
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| | Morningstar.com - An Investor's Worst Nightmare |
| | When you prepare your tax return, many of you will have to go back through your records or old statements to figure out what your "cost basis" was in any security you've sold. | | | If you specify the shares that were purchased at $15 and you sell them at $16, you only have to pay tax on the $1 per share of capital gain. | | | If you don't, the price could be heavy: paying tax more than once on reinvested dividends and capital gains or creating problems for your heirs by delaying the settlement of your estate. |
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http://news.morningstar.com/doc/pfarticle/0,,taxplanning~,00.html?pgid=wwhome5a
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