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Old 01-18-2007, 05:04 PM
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AMT Taxes

How can I avoid paying AMT taxes?



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Old 01-21-2007, 01:30 AM
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Dear Daso,

AMT taxes are very difficult to avoid. They were enacted by Congress to ensure that high income tax payers end up paying their fair share of taxes. There is very little in terms of strategy to avoid the wrath of the AMT.

If your income is very high, >$500,000 then there is very little you can do. In fact, AMT has struck some of my clients who made as little as $100,000!!! The tax payer claimed 6 dependents.

Another tax payer was paying high State income taxes..This is another tax preference item that causes AMT to apply.

In short, there is probably very little anybody can do to avoid imposition of AMT taxes for high income tax payers or taxpayer claiming > 5 dependents.

Congress talks about raising the limits, but its pure politics nothing is going change in my humble opinion as it brings in Billions of revenue.



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