Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
With some serious long term gains, I am expecting that I will be in the AMT territory for tax-2007 season and I am likely to have exhausted any AMT-exemption. I would appreciate suggestions from folks in similar situations to reduce AMT.

I don't own a home. The only deductions I make are
a) personal exemption in 1040
b) state/local income taxes in schedule-A (itemized deductions)
c) charitable contributions in schedule-A (itemized deductions)

I think I have very few things I could do in practice to minimize AMT.
1) Buy a home because the interest of primary-residence is fully AMT-deductible
2) pay less state-tax this year and owe more to state in April-2007.
3) increase charitable contributions this year
4) don't realize the income from stock sales that result in long-term gains. Transfer stocks to a LLC in exchange for a partnership. This may actually not exhaust the AMT-exemption
5) write to my representative and senator about abolishing AMT at least for tax-2007. :)

Do I have other things I could do to reduce AMT? I really don't mind paying taxes on my income, but would like to get as many legal deductions as I can. I read and hear about folks that pay zero taxes on $200K income and always wondered if there are things that IRS doesn't explicitly put it out there.

Print the post  


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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.