Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121261  
Subject: Re: amt for 2013? Date: 9/2/2013 12:34 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
We're missing some info here.

LT cap gain: 71,435.

RMD: 71,322.

Taxable SS: 37,137.

AGI: 175,019.


When I add those three, I get 179,894.


St Deduct: (14,600).

3 Exempts: (11,700).

Taxable Inc: 148,719.


So you're married, both of you are over 65, and you have an additional dependent in the house. I'm still off by the difference in AGI, but I'll go with your numbers anyway.


Tax: 21,885.

Working through the schedule D tax worksheet (and adjusting the 2012 worksheet for 2013 tax rates), I get 21,894. Close enough for this exercise.


My attempt at AMT:

Let's just start over on that.

We'll assume your AGI is the same as your AMTI (which is fairly reasonable in your case).

The phase out of your AMT exemption begins at 153,900 of AMTI. You're 21,119 over that. And you lose $1 of exemption for every $4 over the threshold. So divide 21,119 by 4 and we get $5280 of lost exemption and a remaining exemption of 75,520. So we've got:

AMTI 175,019
Exemption 75,520
AMT taxable 99,499

We still get the benefit of the 15% rate on your LTCG. So that leaves 71,435 taxed at 15% and 28,064 at 28% (some of that will be at 26%, but I generally just use 28% for planning). Doing the math, I get 10,715 plus 7,858 for a total of 18,573 of AMT.

That's less than the regular tax, so I'm not coming up with any AMT at all. I'd take a closer look at the details of the TT "what if" scenario and see how it's coming up with a lot more AMT.

--Peter
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement