Planning Strategies
Although the AMT can be tricky at times, there are several planning strategies that can be implemented to avoid or postpone the AMT tax, they include the following:
  • Purchase public purpose municipal bonds.
  • Defer the exercise of incentive stock options.
  • Sell exercised incentive stock options in the same year they're exercised.
  • Review income and expenses.
  • Do not prepay state or local income taxes or property taxes as they are not deductible under AMT.
  • Deferring deductible medical expenses and charitable giving.
  • Postpone capital gains or business income that could trigger AMT by pushing your income over the AMT exemption.


Sample Questions 1 - 5

Related Articles
  1. Taxes

    How to Cut Your Alternative Minimum Tax

    Should you worry about the AMT? Even if you're subject to it, there are exemptions and strategies for reducing your tax bill.
  2. Taxes

    Can Trump Kill the Alternative Minimum Tax (AMT)?

    Getting rid of the AMT would be great for upper-middle class taxpayers, but the Treasury would take a hit.
  3. Taxes

    Tax Planning Strategies for the Year Ahead

    The uncertainty surrounding President-Elect Trump may have a significant impact on tax planning.
  4. Taxes

    End-of-the-Year Checklist to Save on Income Taxes

    From grouping related expenses to factoring in the alternative minimum tax, here are some things you need to keep in mind when doing tax planning.
  5. Taxes

    Valuable Year-End Tax Moves for 2016 (Part Three)

    Here's a look at tax strategies for itemized deductions, charitable gifts and other tax credits.
  6. Taxes

    Preparing for Potential Tax Policy Changes

    Here is a comprehensive guide to tax planning in an environment where policies could dramatically change under new leadership in Washington.
  7. Managing Wealth

    Get The Most Out Of Employee Stock Options

    These plans can be lucrative for employees - if they know how to avoid unnecessary taxes.
  8. Taxes

    10 Money-Saving Year-End Tax Tips

    Getting organized well before the deadline will curb your frustration and your tax liability.
  9. Investing

    What's a Tax-Efficient Investment for a Large Sum?

    Here's how to invest a large sum, such as assets from a profit-sharing plan, with a mind toward tax efficiency.
  10. Taxes

    Start Preparing Now For Your Next Tax Bill

    By now, your accountant should be able to estimate your tax bill. If there are some surprises, you still have time to plan any last minute deductions.
Frequently Asked Questions
  1. Depreciation Can Shield Taxes, Bolster Cash Flow

    Depreciation can be used as a tax-deductible expense to reduce tax costs, bolstering cash flow
  2. What schools did Warren Buffett attend on his way to getting his science and economics degrees?

    Learn how Warren Buffett became so successful through his attendance at multiple prestigious schools and his real-world experiences.
  3. How many attempts at each CFA exam is a candidate permitted?

    The CFA Institute allows an individual an unlimited amount of attempts at each examination.Although you can attempt the examination ...
  4. What's the average salary of a market research analyst?

    Learn about average stock market analyst salaries in the U.S. and different factors that affect salaries and overall levels ...
Trading Center