Alternative minimum tax: income shifting is only one way to lessen its impact
Article Abstract:
The alternative minimum tax (AMT) is a tax paid on top of regular tax liability and is usually imposed on non-corporate taxpayers only when it exceeds the regular tax and equals 20 percent of the alternative minimum taxable income (AMTI) over the exemption provided in Section 55(f)(1). The exemptions are $40,000 for joint returns or returns of surviving spouses, $30,000 for unmarried individuals (other than a surviving spouse), and $20,000 for married individuals filing separately, estates and trusts. The process of determining the AMTI, the alternative tax itemized deductions allowed, tax preference items, the separate net operating loss computation, aspects of planning for the AMT, and the effects of the Tax Reform Bill of 1985 are described.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1986
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Planning dispositions to maximize current tax benefits of installment sales rules
Article Abstract:
Section 453's installment sales provisions were simplified to a degree in 1980 but they are still rather complicated. The importance of the provisions for tax practitioners is related to the installment method's being required for recognizing gain unless an election is filed not to use it. Wraparound mortgages, contingent sales, unstated interest, recapture and related parties, dispositions, proposed legislation and partnerships are described.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1986
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