"gindie" <gindie[at]hotmail.com> writes:

- quote -

It's only an "AMT trigger" if it isn't taxed under the
regular tax system but is taxed under the AMT system (or is
taxed at a significantly lower rate under the regular system
than under the AMT system). If it is identically taxed
under both systems (like the vast majority of income items),
it has no AMT effect (aside from the generic second-order
effect that raising one's income in general tends to make
one more vulnerable to the AMT if you are in the AMT
exemption phaseout range). And dividends are taxed
identically under both systems.

Since SAIC has said the dividend "should constitute a
taxable dividend for federal income tax purposes", unless
they are mistaken, this dividend would be treated no
different than any other dividend on any other stock you
hold and so is not an "AMT trigger".

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Would a cash dividend paid on shares in a retirement ESOP
count towards AMT determination? We would be required to
take the dividend in cash, re-investment of the dividend in
the ESOP is not an option.

I realize, at the very least, this income would be taxed as
ordinary income.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >