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How To Avoid Alternative Minimum Tax

Monday, February 15, 2010 - 7:52 AM
Consumer Boomer blog has a good review of AMT with some useful tips.
1
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Monday, February 15, 2010 - 12:31 PM
We are already in the year 2010 and Congress has not yet patched the exemption amount and unless a patch is passed retroactively to January 1, 2010, many millions of middle class people will be affected owing a large chunk of money.    In the past Congress has waited until the last minute, sometimes late in December to pass a patch but the last time round they did a patch for 2 years, 2008 and 2009.   Obama supposedly put the financial cost of the AMT on budget but he merely states the patch will need to be done retroactively.   I see some back and forth horse-trading happening later in the year as the deadline looms closer and closer.   Obama claims to be "agnostic" now regarding tax increases --- who knows what's up his sleeve.   If he supposedly has it on budget, why hasn't he had the Democrats put forth the bill.   I believe that Republicans would go along with it as they have in the past.  Is he waiting until after the November elections to make up his mind?

I personally think they will drag it out for as long as they can and when the Obama administration determines they can get the biggest bang for the buck in terms of concessions from the Republicans for liberal pet projects, then and only then will they attempt to deal with the matter of the AMT exemption amount patch for the middle class.

If they are not going to try to get something else in exchange for the AMT exemption patch, then why have they not done it already! 
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,919
2. Tuesday, February 16, 2010 - 6:07 PM
Tax filing season has begun for over a month and they have not made any provisions to adjust the AMT income thresholds.  Congress is probably all tied up with tons of other bills and the economic crisis situation.  Someone will have to "cry wolf" before anyone there decides to tackle that issue.  Congress drags its foot a lot so nothing new to how this has transpired.
1
AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,919
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