I need some help understanding what is happened here for 2013. I completed a "what if" in TT and was surprised to see that AMT was triggered - by LT cap gains, apparently. I expected a 25% marginal tax bracket and 15% LT cap gains. Instead I seem to get AMT at 27%? (That 15% cap gain rate was an important consideration when I sold the stock. An alternative was a Roth distribution. Or even a mortgage. I thought I was choosing instead a 15% cap gain rate. NOT???)I'd really like to better understand AMT. It seems as though my cap gains are effectively taxed at 26% under AMT for 2013? Caveat. This is NOT a normal year. But here are the #s for 2013 in hopes that someone can parse it out for me re what happened. LT cap gain: 71,435.RMD: 71,322.Taxable SS: 37,137.Tot Inc: 175,019.AGI: 175,019.St Deduct: (14,600).3 Exempts: (11,700).Taxable Inc: 148,719. Tax: 21,885.AMT: 3971.Tax: 25,856. >>>>>My attempt at AMT:AGI: 175,019Exempt: 80,800= : 94,219And, 94,219 X 26% = 24,497. OR, 94,219 x 27% = 25,439. Which is closer to the 25,856 above #. 27%???Is the effective cap gain rate 27% in this example? Did the AMT exemption phase out apply, too? Or what?Thank you. ML ps Hindsight. I should have run "what if" before the sale. I just never DREAMED that the sale would trigger AMT.
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