On Feb 15, 6:42 pm, "PT" <x...[at]xyz.com> wrote:

- quote -

Yes, they could end up owing more AMT because of qualified dividends
and long term capital gains . While these items of income are not
subject to AMT (they are still taxed at 15% under AMT), they do
increase your AGI, and thereby decrease your AMTI exemption (form
6251, line 30, http://www.irs.gov/pub/irs-pdf/f6251.pdf).

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In theory, anyhow, the AMT is designed to reduce a taxpayer's benefit from a
variety of deductions, credits, and another adjustments.

However, I understood that the 15% rate applicable both to qualified
dividends and long-term capital gains was not among the tainted items. In
fact form 6251 Part III requires a set of lengthy calculations to deal with
15% rate long term capital gains.

Here's my question, should I expect that a taxpayer with no AMT adjustments,
but a substantial AGI, which includes substantial 15% rate long term capital
gains to end up owing an AMT?
--

PT


========================================= MODERATOR'S COMMENT:
Yes, if AGI is high enough there could be AMT.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >