They either don't owe any AMT
(in the case of a TMT below the regular tax liability) or owe AMT
in the amount of $22,763 (the difference between $77,492 and $54,729).
Because the AMT
does not provide a deduction for state and local taxes paid, as the regular tax code does, the Tax Foundation states.
Their AGI of $150,000 consists solely of income taxed the same way under regular and AMT
The Administration issued a veto threat against the House's modified AMT
legislation and stated that imposing a tax increase on one group of taxpayers is not the appropriate way to protect 21 million additional taxpayers from the reach of the AMT
Increase and index for inflation the AMT
brackets and exemption amounts, and eliminate phaseouts.
The greater the investment wealth, and the greater the advisory fees, the more likely the AMT
has become a tax penalty," complained Rosa DeLauro of Connecticut in May.
When the Gordons filled out both 2002 returns, their income under the AMT
was $27,000 higher than their regular income tax after they added back state and local taxes and a $10,000 capital gain.
7) In addition, to provide further economic stimulus and investment, corporate taxpayers with accumulated AMT
credits--amounts that represent a prepayment of a company's regular corporate tax liability--should be afforded the opportunity to recover those credits.
In the years since, the AMT
has been modified several times, changing the preference items and the tax rates.
permits a disallowance of 90 percent of the NOLs, leaving 10 percent of the NOLs as a tax liability.
That is, $40,000 in regular income taxes on real income I actually earned, and another $72,000 in AMT
that is on income I never actually received, and income I may never actually receive given the stock price.