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Subject Author Date
Wash sales on gains? Ted 06-04-2008
Posted by removeps-groups@yahoo.com on June 5, 2008, 10:57 am
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> > Can you let us know how recognizing capital gains will
> > cost you nothing because you have AMT?
>
> I "thought" my real tax would go up and my AMT would go down; applying the
> same deductions to significantly more income.
>
> As you suggest, it doesn't work that way. When I put numbers into TaxCut my
> AMT skyrocketed. My tax rate on long term capital gains was 22%. That
> doesn't seem right!

Long term capital gains are still taxed at 15% under AMT, but they
increase your AGI and thus cause your AMT exemption to decrease.

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Posted by joetaxpayer on June 5, 2008, 11:11 am
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removeps-groups@yahoo.com wrote:
>>When I put numbers into TaxCut my
>>AMT skyrocketed. My tax rate on long term capital gains was 22%. That
>>doesn't seem right!
>
>
> Long term capital gains are still taxed at 15% under AMT, but they
> increase your AGI and thus cause your AMT exemption to decrease.

Right. Long ago, I saw an article that discussed the many phantom rates.
Not too different than the 46.25% that a single retired person can have
when their Social Security starts getting taxed. And yet, I've seen
little conversation about how this impacts the people who are least able
to adjust their finances to compensate.
Joe
www.blog.joetaxpayer.com

--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>

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