The Alternative Minimum Tax has been patched for another year, but the lateness of the fix will mean late refunds for millions of filers.

This fix is only temporary. Congress must act again next year, or the AMT exemption amounts for 2008 will revert to year 2000 levels.

In late December, Congress passed the Tax Increase Prevention Act of 2007 (H.R. 3996) and President Bush signed it into law. TIPA patches AMT for 2007, but does not offset the cost of the patch by increasing taxes elsewhere.

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Written by Robert J. Nolan, EA, CPA
October 2007

Every year, Congress changes the tax law. Some changes are very narrowly targeted and do not make much difference to the typical taxpayer. Others affect a lot of people. Here are a few changes that may affect you for the 2007 filing season.

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Written by Jamie S. Baker
October 2007

Over the years, taxpayers have become accustomed to deducting mortgage interest on Schedule A. But many do not understand that although you can deduct home mortgage interest on Schedule A, you may have to include a portion of that deduction on Form 6251, Alternative Minimum Tax.

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Written by Sam Albright, EA
October 2007

Smart tax planning requires maintaining accurate records on your income, expenses, and the deductions you take on your tax returns each year.  It also requires safekeeping of items, such as records of stock purchases or HUD statements, that determine your capital gain or loss when you dispose of an asset.  The proverbial shoebox is a poor tool for file storage and security. As a first step in smart planning, get a safety deposit box at your local bank, or a fireproof safe for your home.

And then use it to get organized!

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Written by Merry Broughton, EA
October 2007

About one in five taxpayers will have to pay the Alternative Minimum Tax (AMT) by 2010, unless reforms are made.[1] Not only will taxpayers in the $100,000–$500,000 income range owe AMT, but taxpayers in the $50,000–$100,000 income range will be surprised to learn they owe it too.

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Written by Sam Albright, EA
October 2007

Smart planning is vital to reducing your tax liability to the absolute minimum in a single year. It takes even smarter planning to reduce that liability for the future—but it can be done.

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Written by Todd D. Borger, CPA

When you sell your home, any gain you make is usually tax-free. But sometimes a sale is fully or partially taxable. Here are some common scenarios where that's true.

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