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usmcr 
Group: Members
Posts: 922
Joined: Sep. 2003
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Posted on: Nov. 07 2012,1:42 pm |
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http://www.startribune.com/nation/177407211.html
anyone know how this will impact one's tax return?
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"Do not confuse dissent with disloyalty" Edward R Murrow
Memento homo quia pulvis es, et in pulverem veverteris
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| Post Number: 2
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Grinning_Dragon
rideo draconigena
Group: Members
Posts: 3095
Joined: Aug. 2003
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Posted on: Nov. 07 2012,1:55 pm |
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(usmcr @ Nov. 07 2012,1:42 pm)
QUOTE
Will affect many middle class income earners greatly. The AMT needs to die, biggest POS tax code there is.
The Alternative Minimum Tax, or AMT, is a parallel tax system. Every taxpayer is responsible for paying the higher of the regular tax or the minimum tax. The difference between the two tax calculations is calculated on IRS Form 6251 (pdf) and using Instructions for Form 6251. If the minimum tax is higher, the difference between the two tax rates is added to your Form 1040 as an additional alternative minimum tax.
The alternative minimum tax began as a way to ensure that taxpayers pay at least a minimum amount of tax. The AMT has a completely different set of calculations than the regular tax. For the regular tax, you add up your total income, subtract out various deductions and personal exemptions, then calculate the tax. Against the regular tax you can claim various credits to reduce your tax even further. The AMT, however, does not allow the standard deduction, personal exemptions, or certain itemized deductions. Also some income which is not subject to the regular tax is added for AMT purposes. Your tax under AMT rules may be higher than your tax under regular tax rules.
AMT Adjustments
When calculating the alternative minimum tax, various adjustments are made. Some income is added which is not subject to the regular tax. Some deductions are adjusted downwards or eliminated entirely.
The following items may trigger an AMT liability:
Itemized deductions for state and local taxes, medical expenses, and miscellaneous expenses
Mortgage interest on home equity debt
Accelerated depreciation
Exercising (but not selling) incentive stock options
Tax-exempt interest from private activity bonds
Passive income or losses
Net operating loss deduction
Foreign tax credits
Investment expenses
This list is not comprehensive, but reflects the typical adjustments I see that can trigger an AMT liability. Typically, the alternative minimum tax eliminates most or exactly all of the regular tax savings from the above-mentioned deductions.
For a comprehensive discussion of all the AMT adjustments and tax planning strategies, see chapter 23 of J.K. Lasser's Your Income Tax. Another top-notch resource is chapter 14 of the PriceWaterhouseCoopers Guide to Tax and Financial Planning which provides a checklist of fourteen strategies for minimizing the AMT.
More Here
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*SIC SEMPER TYRANNIS / MOLON LABE / Se Defendendo
memoria of cado frater ,Semper fidelis
*The object of war is NOT to DIE for YOUR Country, but to make the OTHER BASTARD DIE for HIS...Patton
My Constitutional Rights trump your dead.
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| Post Number: 3
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usmcr
Group: Members
Posts: 922
Joined: Sep. 2003
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Posted on: Nov. 07 2012,2:00 pm |
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it sounds as if congress has a very limited time frame to correct, modify or delete this tax situation.
from their past performance the outcome does not look promising! from what i can gather a lot of folks are going to have a big surprise from their tax person!
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"Do not confuse dissent with disloyalty" Edward R Murrow
Memento homo quia pulvis es, et in pulverem veverteris
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Grinning_Dragon
rideo draconigena
Group: Members
Posts: 3095
Joined: Aug. 2003
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Posted on: Nov. 07 2012,2:10 pm |
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We are preparing for it, or should I say our tax accountant is.
We have been looking at different ways of shifting our money and assets around to avoid a big hit. Congress and the idiot in the house has had 4 years to get things done, and the only thing that has been accomplished is nothing but BS social crap and golf outings. 
I don't expect anything to get done in the next 4 either.
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*SIC SEMPER TYRANNIS / MOLON LABE / Se Defendendo
memoria of cado frater ,Semper fidelis
*The object of war is NOT to DIE for YOUR Country, but to make the OTHER BASTARD DIE for HIS...Patton
My Constitutional Rights trump your dead.
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hairhertz
Group: Members
Posts: 3489
Joined: Dec. 2004
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Posted on: Nov. 07 2012,3:02 pm |
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it's a shame that we have to hire CPAs to handle our taxes, there has to be a better way
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metis movement
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Common Citizen
Group: Members
Posts: 4818
Joined: Jul. 2006
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Posted on: Nov. 07 2012,8:17 pm |
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(grassman @ Nov. 07 2012,3:40 pm)
QUOTE
(hairhertz @ Nov. 07 2012,3:02 pm)
QUOTE it's a shame that we have to hire CPAs to handle our taxes, there has to be a better way Trust me, it is no accident. Why do we need to hire money managers(401k).
For starters, the average Joe would have a hard time explaining what an ROI or a P/E ratio is, let alone what numbers would be acceptable when measuring risk vs. reward.
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| Post Number: 9
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hairhertz
Group: Members
Posts: 3489
Joined: Dec. 2004
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Posted on: Nov. 07 2012,9:18 pm |
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mark me down as an average Joe 
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metis movement
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| Post Number: 10
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grassman
Group: Members
Posts: 3858
Joined: Mar. 2006
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Posted on: Nov. 08 2012,4:49 pm |
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(Common Citizen @ Nov. 07 2012,8:17 pm)
QUOTE
(grassman @ Nov. 07 2012,3:40 pm)
QUOTE
(hairhertz @ Nov. 07 2012,3:02 pm)
QUOTE it's a shame that we have to hire CPAs to handle our taxes, there has to be a better way Trust me, it is no accident. Why do we need to hire money managers(401k). For starters, the average Joe would have a hard time explaining what an ROI or a P/E ratio is, let alone what numbers would be acceptable when measuring risk vs. reward.
Exactly, that is another little gift from Reagan.
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git er done!
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