"Cjosh" <cjosh[at]aol.com> wrote:

- quote -

Nothing involving IRA's period are an AMT item.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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For 2003, taxpayer (H) had earned income but had no pension
participation at any time during the year. Non-working
spouse had no earned income. Taxpayer contributed $3000 to
his IRA. Based on taxpayer's income, the spouse contributed
$3000 to her spousal IRA. Both IRA's are traditional. They
deducted the total $6000 on their MFJ 1040.

1) Is the non-working spouse's $3000 IRA deduction an AMT item?

2) If yes (the spousal IRA *is* an AMT item for 2003), and
if a portion of the spouse's $3000 IRA deduction causes an
AMT liability, could they have chosen to deduct only the
portion of the spouse's IRA contribution which did not
trigger AMT, and reported the balance of the spouse's
contribution as non-deductible?

3) Or, can they now amend the return to do the same? - the
purpose being to eliminate the AMT for 2003 and also change
the future taxability of the non-deducted portion of the
spousal IRA.

4) If no (the spousal IRA deduction is *not* an AMT item
for 2003), did the law change within the past five years?

TIA

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