2007-03-07 02:06:58 · 5 answers · asked by sun f 1 in Business & Finance ➔ Taxes ➔ United States
Aside from money laundering and tax evasion as suggested, if you find you are subject to the AMT, you may be able to eliminate or reduce the AMT by reducing the deductions you take that the AMT ignores.
One of the most common triggers for the AMT is unreimbursed employee expenses, and this is one expense that you can reduce after the fact by just not claiming every expense. By reducing this amount on your return which has triggered the AMT, you may find that your tax is decreased rather than increased.
Other triggers for AMT are medical expenses, payments of state, local, and real estate taxes, incentive stock options. To the extent you can control these amounts, you may reduce or eliminate AMT.
If you suspect that you may be subject to AMT, do a return before the end of the year and see if AMT is triggered, and defer payments of these amounts when possible.
2007-03-07 02:30:14 · answer #1 · answered by ninasgramma 7 · 2⤊ 0⤋
AMT is suppost to level the tax playing field for those who make alot of money. But now, alot of people with upper middle class incomes can fall into AMT. Here's a website laying out the ways you can be hit with AMT: http://www.fool.com/personal-finance/taxes/2006/09/22/avoid-the-dreaded-amt.aspx
Usually, once you've fallen into AMT, it's tough to get out of it.
2007-03-07 02:12:28 · answer #2 · answered by peachygurl86 2 · 0⤊ 0⤋
Depends. Do you have your own business? If so, start another business in Panama to advertise your business in the Latin market. Then...pay that company a very generous fee each month to "advertise" for you. Get a staff, have them make calls. Labor is very cheap there and your Panamanian company needs to make a profit (which is tax free in Panama by the way). This would be an expense to your USA company each month with profits building up in your Panamanian Corporation. Just do a web search for Panama Corporations and you can get started with an existing shell corp. Great way to build a profitable business, increase your companies market share in a growing market and save from paying US taxes on all your income profits. If you work for someone else, sorry, you are screwed on the AMT.
2007-03-07 02:16:12 · answer #3 · answered by Anonymous · 0⤊ 4⤋
pay off your mortgage and use the standard deduction. for most people, eliminating itemized deductions will eliminate the need for AMT
2007-03-07 04:45:24 · answer #4 · answered by Ovrtaxed 4 · 0⤊ 1⤋
Move to Australia.
2007-03-07 05:30:51 · answer #5 · answered by bold4bs 4 · 0⤊ 1⤋