The medical world seems littered with acronyms; ADHD, AIDS, CPR, DRG, EEG, HIPAA, HMO, HSA, ICU, LPN, MS, PCP, RN, and of course AMT.
AMT or Alternative Minimum Tax has been a growing epidemic. In 1970 only 19,000 people in the US suffered with AMT, in 2010, millions were inflicted with this calamity. Many of my clients have been diagnosed with AMT. Symptoms include headache and nausea.
You may be wondering who is at risk for AMT. Those most vulnerable are people with incomes over $75,000 and large deductions. Some common triggers include several children, interest deductions from second mortgages, capital gains, high state and local taxes, incentive stock options, self employment, rental properties, partnership interests and S Corp stock.
In 2011 the exempted income for couples was increased to $74,450 and $48,450 for singles. If AMT kicks in, the tax rate is 26% up to $175,000 and 28% above that. The actual calculation is far more complex than this simplified description. At a later date I may do a more in depth post on this painful affliction.
If you feel like you are coming down with AMT take two aspirin and call me in the morning.
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).
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