Alternative Minimum Tax Issues
AMT stands for the Alternative Minimum Tax, which is intended to ensure that high-income taxpayers pay at least a minimum amount of tax. Tax laws give preferential treatment to certain kinds of income and allow special deductions and credits for certain expenses; without the alternative minimum tax, high-income taxpayers could take advantage of these tax laws to save big on taxes. The alternative minimum tax attempts to ensure that if you benefit from these tax advantages, you will still pay at least a minimum amount of tax.
The alternative minimum tax is a separate tax computation that reduces the benefit of certain deductions and credits, thus, creating a tax liability for an individual who would otherwise pay little or no tax.
The effects of AMT can be financially disastrous. There are strategies that can be implemented to help avoid or reduce the effects of the AMT. Esquire Group is capable of implementing those strategies for you.
Esquire Group will evaluate your potential AMT liability and determine the best strategy to avoid or reduce the effects of the AMT. We will then help you develop tax strategies for future years to help try and avoid AMT.