I understand cap gains and dividends, but with AMT, how do you show $63 million AGI and still get down to 11% tax of AGI?AMT doesn't affect the cap gain/dividend rate or the charitable deduction, and the high-income reduction of itemized deductions doesn't apply after 2009.I'll simplify the numbers a bit and make some things up just for show and tell.AGI: $60 millionLTCG: $60 milliionCharitable Contributions: $30 millionSince he doesn't get personal exemptions under AMT his taxable income is $30 million, and 15% of that is $4.5 million. That's 7.5% of $60 million. (It actually would be a little less because of the 0% tax up to the top of the 15% bracket.)PhilRule Your Retirement Home Fool
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