Amt

[IN2B8R]

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The alternative minimum tax: how do you cope with it and how do you reduce your exposure?

 

[deleted126335]

The alternative minimum tax: how do you cope with it and how do you reduce your exposure?

It is virtually unavoidable for most of us. Most deductions are disallowed other than mortgage interest or charitable deductions.

Option 1. Pay it. Choose to live in a low state income tax and property tax area. Tax manage investments. Aggressively harvest losses. Pay attention to which assets are in which account.

You can play with timing of state income tax last quarterly payment if you are on the threshold of the AMT, but it is just pissing in the wind.

Option 2. Cheat on your taxes.

I prefer option 1.

 

[IN2B8R]

It is virtually unavoidable for most of us. Most deductions are disallowed other than mortgage interest or charitable deductions.

Option 1. Pay it. Choose to live in a low state income tax and property tax area. Tax manage investments. Aggressively harvest losses. Pay attention to which assets are in which account.

You can play with timing of state income tax last quarterly payment if you are on the threshold of the AMT, but it is just pissing in the wind.

Option 2. Cheat on your taxes.

I prefer option 1.

This year I got shafted hard. Good chunk went to state taxes too. Upward social mobility is stiffled by this system. Tough to accept each time I go through it...👎