Alternative Minimum Tax - B.S.?

[nicholas421]

I can't seem to find an accountant that can clearly explain to me what Alternative Minimum Tax (AMT) is. But they all agree that I have to file form 6251 (AMT Liability). Basically I'm paying some predetermined tax amount regardless of my write offs. It just ticks me off that I am "married with zero", have tons to write off due to my business travels and YET I still owe money to the IRS because of this stupid AMT.

Does anyone have any idea what exactly AMT Liability is and how I can avoid falling under its category?

 

[RPM217]

I can't seem to find an accountant that can clearly explain to me what Alternative Minimum Tax (AMT) is. But they all agree that I have to file form 6251 (AMT Liability). Basically I'm paying some predetermined tax amount regardless of my write offs. It just ticks me off that I am "married with zero", have tons to write off due to my business travels and YET I still owe money to the IRS because of this stupid AMT.

Does anyone have any idea what exactly AMT Liability is and how I can avoid falling under its category?

Hope this helps!!
http://www.smartmoney.com/tax/filing/index.cfm?story=amt&hpadref=1

One way to avoid is to earn less!!!

 

[Dtrigg]

The AMT means that you have too many deductions and you have to pay that basic minimum amount of tax.

I agree, it's terrible. It is a way of making people pay even if they have lots of deductions. Haven't your accountants provided you with ways to avoid AMT?

 

[nsxtasy]

I can't seem to find an accountant that can clearly explain to me what Alternative Minimum Tax (AMT) is.

http://www.irs.gov/taxtopics/tc556.html has a brief description of the tax itself.

Recently there have been a flurry of articles, including an editorial in the New York Times a week ago, about how the AMT was originally intended as a tax on the extreme upper income brackets, but the way the tax law was written, is now going to apply to millions of upper-middle-income taxpayers, which was never the intention. A similar article, which you can read here, was in Time magazine.

Keep in mind, though, that it only hits you hard if you have a pretty good income - so you should be grateful for the latter...