CFP

Alternative Minimum Tax - Planning Strategies

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.




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