Alternative Minimum Tax – Killer Strategy
This tax is intended to target individuals with a high gross income, usually higher than $75,000, who are subject to deductions from state and local taxes, incentive stock options, sales and property taxes, miscellaneous itemized deductions, etc.
Alternative Minimum Tax Calculation
The AMT has different tax rules for determining your income taxes and calculating your deductions.You may be held liable for the alternative minimum taxable income, if the amount calculated using the AMT rules exceeds your regular tax liability.If the amount determined through alternative minimum tax rules is smaller than the amount you initially calculated, you just have to pay your regular tax liability.In order to determine the alternative minimum amount of taxable income you may owe, fill out the Form 6251. You must report all the exemption deductions, standards deductions, certain exempt income, certain credits, etc.There are certain tax planning strategies to avoid the alternative minimum tax. We deal with the IRS everyday and know the steps that are needed to resolve your tax problem. Make sure you do the smart thing and hire professional representation to ensure you get the best resolution in place. For further assistance, call us now at 713-774-4467!