Comments on: AMT Changes for 2008 and 2009 http://www.pappasontaxes.com/index.php/2009/05/06/amt-changes-for-2008-and-2009/ Pappas on Taxation Thu, 09 Feb 2012 04:09:25 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Democrats and Republicans Pledge AMT Fix http://www.pappasontaxes.com/index.php/2009/05/06/amt-changes-for-2008-and-2009/comment-page-1/#comment-7855 Democrats and Republicans Pledge AMT Fix Thu, 11 Nov 2010 14:38:38 +0000 http://blog.pappastax.com/?p=5281#comment-7855 [...] AMT Changes for 2008 and 2009 [...] [...] AMT Changes for 2008 and 2009 [...]

]]> By: Joy Whaley http://www.pappasontaxes.com/index.php/2009/05/06/amt-changes-for-2008-and-2009/comment-page-1/#comment-3418 Joy Whaley Sat, 28 Nov 2009 13:19:35 +0000 http://blog.pappastax.com/?p=5281#comment-3418 I'm a college student that has to post for a school project... so here goes! Miscellaneous itemized deductions which are subject to the 2% of adjusted gross income floor are not allowed as part of the AMT calculation. In fact, these deductions are added back as a positive AMT adjustment in the amount of the regular income tax deduction. Tax preparation fees are included in miscellaneous itemized deductions. Thus, in the example above, it does make more sense to defer the expense into the next year, provided that AMT will not be a factor for the next year and the fees exceed the 2% threshold. I’m a college student that has to post for a school project… so here goes!

Miscellaneous itemized deductions which are subject to the 2% of adjusted gross income floor are not allowed as part of the AMT calculation. In fact, these deductions are added back as a positive AMT adjustment in the amount of the regular income tax deduction. Tax preparation fees are included in miscellaneous itemized deductions. Thus, in the example above, it does make more sense to defer the expense into the next year, provided that AMT will not be a factor for the next year and the fees exceed the 2% threshold.

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