December 24, 2011 |
Year-end financial planning is probably the last thing you want to think about while you're whipping up eggnog. But spend a few minutes now and you can save a bundle on your taxes. "No one wants to make the time at this time of year," says Philip J. Holthouse, partner at the Los Angeles tax law and accounting firm of Holthouse Carlin & Van Trigt. "But a little last-minute planning can reap rewards worth thousands of dollars. " Charitable contributions: Gifts to charity soar near the holidays.
December 10, 2007 |
Congress is trying to amend the tax code to keep millions of Americans from having to pay the alternative minimum tax, which the Internal Revenue Service and the taxpayer advocate say is one of the most complicated provisions for taxpayers. What is the alternative minimum tax? The AMT is a tax on income calculated by an alternative method than that used to calculate the standard income tax. Unlike the standard income tax calculation, which allows multiple deductions, the AMT calculation is designed to limit deductions.
November 12, 2007
Re "AMT alternatives," editorial, Nov. 8 It seems fashionable to slam the alternative minimum tax as somehow fair when it is paid by the very rich, but unfair when it is paid by the middle class. Why? In all cases, the AMT assures that people who benefit too much from tax loopholes (such as receiving a lot of their income from tax-free bonds) do pay some income tax. Middle-income people should be less likely to do these things, but when they do, I believe that it is fair to assess the AMT.
November 8, 2007
Another year, another tizzy in Washington over the alternative minimum tax, that odd wrinkle in the tax code that forces millions of middle-income taxpayers to compute their taxes twice and, in an ever-growing number of cases, face huge increases on their bills from the IRS. Congress failed to index the AMT to inflation in 1969, when it introduced the tax to prevent 155 ultra-rich families from avoiding paying taxes altogether.
November 2, 2007 |
In a sign of changing priorities, the tax-writing panel of the U.S. House on Thursday voted to hike taxes paid by managers of many investment firms, as part of a broader tax-relief plan for millions of households who would owe extra money this year under the alternative minimum tax. The action by the House Ways and Means Committee ignited a struggle that will be played out in the coming days, as members battle over plans to prevent the AMT from hitting 23 million households this year.
April 16, 2007
THIS TIME NEXT YEAR, "alternative minimum tax" will either be Google's most popular search term or a forgotten phrase from an obscure policy debate. The first option is more likely because, for it to be forgotten, Congress will not only have to hold that debate, it will have to resolve it. And that's never a wise bet. The AMT, as it's known, will affect about 4 million taxpayers this year. Next year it could affect 23 million. It's safe to say that they will not be pleased.