The AMT: Treacherous waters are waiting to trap you

Description

Abstract: For years, Congress repeatedly went through the motions of temporarily patching the alternative minimum tax (AMT), with the goal of limiting the number of taxpayers who were liable to pay it. At the beginning of 2013, they made the AMT patch permanent. But even with it, many taxpayers will fall into the AMT “trap.” This article examines how the AMT works, who might be vulnerable to it, and how to plan for it so as to avoid or minimize its impact.