Re: Additional Standard Deduction for Real Estate Taxes
An Alternative Minimum Tax (AMT) is imposed by the United States Federal government on individuals, corporations, estates, and trusts. AMT is computed at 26% or 28% for individuals and 20% for corporations on taxable income as adjusted for AMT. Taxpayers are allowed a flat exemption amount but not personal exemptions or the standard deduction. The exemption of $70,950 for married couples filing jointly, $46,700 for single individuals, and $40,000 for corporations is phased out at higher incomes. Individuals may not deduct taxes or miscellaneous itemized deductions. Depreciation deductions are computed using longer lives and slower methods. Other adjustments apply. The AMT rate for capital gains and qualified dividends currently is the same as the regular tax rate for such items. A foreign tax credit and eight other business credits are allowed to reduce AMT.