The alternative minimum tax, originally created to curb tax shelters and tax preferences of the wealthy, can now apply to the average taxpayer. Six commonly encountered deductions routinely cause the average taxpayer to be hit by the AMT. Incentive stock options can also have a profound impact on the AMT.
There are two ways to determine your federal tax liability - the regular way that most everyone understands, and the alternative minimum tax method. Your tax will be the higher of the two.
So what is the alternative minimum tax and why are you getting hit with it? Well, many, ...
If you run your business out of your home, you may want to “write off” many of your household expenses. But how do you know what is deductible and what is not?
Generally, expenses related to the rent, purchase, maintenance and repair of a personal residence are not deductible. However, if you use part of your home for business purposes, you may be able to take a deduction for the business use of your home on your self-employed business schedule. This deduction is commonly referred to as the home-office deduction, but it need not necessarily be an “...
Share
RSS