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

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