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The Alternative Minimum Tax is a Killer!
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Congress continues to
follow the pattern of applying temporary one-year fixes instead of
eliminating
the Alternative Minimum Tax. Many typical Middle-Income taxpayers are
stuck paying the Alternative Minimum Tax because they live in high-tax
states. Local property taxes, income taxes, sales taxes and capital
gains are some of the many triggers for AMT.
The
Tax Increase Prevention Act of 2007 raises the exemption
amounts for 2007 tax returns as follows:
- For
joint filers, the exemption amount is $66,250 (up from $62,550)
- For
single filers, the exemption amount is $44,350 (up from $42,500)
- For
marrieds filing separately, the exemption amount is $33,125 (up from
$31,275)
The
applicable AMT tax rate is 26 percent for
the first $175,000 of AMT income. The rate increases to 28
percent for any AMT income above $175,000.
Click Here
for ways to lower the AMT for the current year.
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| If you have a question., call Ronald J. Cappuccio, J.D.,
LL.M.(Tax) at (856)
665-2121 |
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