• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

The AMT just won’t go away

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. Didn’t the 2013 tax law finally eliminate the alternative minimum tax? R.B., Philadelphia

A. No. But the American Taxpayer Relief Act of 2012 (ATRA), which was signed in 2013, permanently increased the exemption amounts for the alternative minimum tax (AMT) and also indexes the exemption amounts for 2013 and beyond to compensate for inflation. Previously, the exemption amounts had been “patched” with increases over the last decade to mitigate the effects of AMT. But note that the AMT exemption amounts phase out for higher-income taxpayers. With the phaseout, the AMT exemption amount is reduced by $1 for every $4 above the applicable threshold.

Tip: ATRA also indexes the threshold for applying the top AMT rate of 28%. For 2013, the 26% rate applies to AMT income up to $179,500 (up from $175.000).

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/37688/the-amt-just-wont-go-away "

Leave a Comment