One thing the 111 Congress must pass during the lame duck session, other than extending the Bush Tax Cuts for all, is a little know tax called AMT. Know as the Alterative Minumum Tax, passed in 1969 to cover <200 big ticket families at the time. Each year hence, Congress kicks the can down road, for over 40 years and issues a extension. Inflation over the years, the net casted includes more and more candidates for AMT including some "middle income earners". You need to discuss with your CPA now what the threshold amount is for year 2010 and the possible tax impact and how one might avoid such tax before years' end. You may not know for sure, until New Year's Eve if an extension has been granted or not. Right now its a catch 22. I don't trust Congress nor the WH anytime especially on this one.
In a nut shell, one has to prepare two Tax Return Forms, the normal Form 1040 and a Form 6251. The Form 6251 is the same as the Form 1040 except without any tax deductions, donations to charity and other legal tax reductions. Guess what? You pay taxes on the higher balance...the Form 6251. Contact your current US congressman and senators to assure AMT gets on the agenda and an extension is issued at least to Yr. 2011, when reason return to Congress.
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