[Yvonne570]

Lol, I am already annoyed with the rules but it gets even more interesting with AMT both individual and Corporations. Does anyone have a simple concept of this tax alternative?

AUD - Passed:)
FAR - Passed:)
REG - Retake TBD
BEC - Missed by 3 points Retake TBD

[The Ace]

by concept do you mean why we have it in the first place?

Basically like warren buffet explained earlier this year, he had a lower effective tax rate (11%) than his secretary (on 63 million in AGI btw). The AMT is in place because as individuals increase in income they have the ability to move income around to thwart taxation and the IRS and higher income taxpayers also have the ability to pay for a CPA to find them the most significant deductions to tax. Back in the 60s people found so many deductions that the IRS needed to figure out a way to still tax these individuals and get some revenue.

not sure if this is what you were looking for but a little fun background info about AMT

FAR - 79 - 11/24/10
AUD - 85 - 2/19/11
BEC - 83 - 7/25/11
REG - 74 - 8/22/11 Rematch 11/21/11
IL Candidate

[Anonymous]

The AMT exists so the government can leech harder on everybody. The AMT was originally supposed to hit the rich people but now is hitting middle class people now. Remember, every time the elephants fights, the ants get hurt. The elephants are government vs rich people, and the ants are the rest of us.

One day I'm going to see a politician with his hands in HIS/HER OWN pocket for a change. No luck yet, but one of these decades….

[Yvonne570]

Thanks Bobkorz. I notice the nightmare as i'm going through the tax studies and the AMT definitely needs to go. What they think is rich, really isn't rich in today's society and how they spend the funds is another ouch —- will keep it quiet. Another topic. LOL.

AUD - Passed:)
FAR - Passed:)
REG - Retake TBD
BEC - Missed by 3 points Retake TBD

[Anonymous]

Oh my gosh-

First you take the taxable income prior to NOL then you add AMT adjustments except for the ACE adjustment then add tax preferences then add the ACE adjustment then subtract the AMT NOL deduction (not the whole NOL but 90% of pre-NOL AMTI) then you have AMTI but then you have to subtract the exemption and then you have the base of the AMT then you need to multiply that by the rate then you have AMT before the foreign tax credit but then you have to subtract the AMT foreign tax credit and then you have the tentative minimum tax so then you need to subtract the regular tax liability before credits less the foreign tax credit then you have AMT.

SERIOUSLY??? How in the world am I ever going to understand this?

[Yvonne570]

If you find out a simple approach, please share. LOL.

AUD - Passed:)
FAR - Passed:)
REG - Retake TBD
BEC - Missed by 3 points Retake TBD

[Anonymous]

@Yvonne570- Ditto! 🙂

[Author]

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