Essentially, another way taxpayers are forced to calculate their taxes—the Alternative Minimum Tax increases your tax bill by reducing many of the exemptions, deductions and credits you may have taken when figuring your regular taxes. Originally designed as a way for the rich to be forced to pay taxes, the Alternative Minimum Tax now has a very real impact on individuals with even a modest income.
The Alternative Minimum Tax is designed to give the average consumer and nontax professional an understanding of the AMT, help them reduce or eliminate its impact and to plan transactions for the lowest AMT result. It instructs the consumer on how to compute it and to identify and claim adjustments, preferences, and exemptions. It also discusses the importance of the AMT credit. With no expectation of a change from Congress, each of the following groups can benefit from the information provided in The Alternative Minimum Tax: - Middle class consumers with gross income of $50,000 - Professionals who are nonbusiness or tax oriented - Anyone who itemize deductions - Corporate executives - Business owners
Chapter 1: Basics of the AMT Filing Form 6251, the Alternative Minimum Tax—Individuals AMT Roadmap AMT Exemptions AMT Rates Capital Gains
Chapter 2: Common AMT Adjustments - Incentive Stock Options Limitation on Deductions
Chapter 3: Unlikely AMT Adjustments Alcohol Fuel Credit Basis Adjustment Circulation Costs Depreciation Installment Sales Long-Term Contracts Mining Costs Net Operating Loss Passive Activity Losses Pollution Control Facilities Tax Shelter Farm Activity
Chapter 4: Tax Preference Items - Accelerated Depreciation (pre-1987) Depletion Intangible Drilling Costs Small Business Stock Exclusion Tax-Exempt Interest
Chapter 5: Importance of the AMT Credits - Nonrefundable Personal Credits Foreign Tax Credit Minimum Tax Credit
Chapter 6: AMT Planning - Tax Planning AMT Planning Specifics Specific AMT Planning Tips Comprehensive AMT Problems Final Thoughts
Glossary - Appendix A: Alternative Minimum Tax—Instructions and Form
Appendix B: AMT Audits
Index
About the Author -
About the Author
Harold S. Peckron is a nationally recognized expert on the Alternative Minimum Tax, with a tax career that spans more than three decades. In addition to writing on the subject, he has taught tax as a tenured law professor and as a seminar leader to professional groups. He has served in government and private industry.
During this career, he has had the opportunity to work with individuals, not-for-profit and for-profit companies, and foreign entities. He has written over four dozen tax articles and a dozen books on tax, including specialized tax subjects of pricing a company and revenue recognition.
Some of the most fulfilling aspects of his career have involved community and business volunteer work that aided struggling and first-time entrepreneurs. Over the years he has participated in Junior Achievement lectures in business to youth and served in the Volunteer Income Assistance Program for low income and elderly taxpayers.
Mr. Peckron holds several graduate degrees, including an LLM in Taxation from the Georgetown University Law School. His interests include running marathons and writing. He lives in Florida.
