T.R | Title | User | Personal Name | Date | Lines |
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43.1 | Get a CPA | MINAR::BISHOP | | Wed Feb 05 1992 14:22 | 13 |
| 1. The whole point of the AMT is to ensure that the government is not
embarassed by millionaires who wind up with no tax liability. So
it's basically a simple tax applied to all income above a high
threshhold, no execptions, no deductions. In other words, the
government makes the rules and they don't own anybody a deduction.
Fury should be directed at your Congressperson or President--send
them a letter.
2. If your tax situation is complex enough to put you in the category
of people who pay AMT, you should get professional help in doing
your taxes. You'll probably save the fee.
-John Bishop
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43.2 | ??? | SSBN1::YANKES | | Wed Feb 05 1992 15:55 | 13 |
|
Re: .0
I'm certainly no expert on the AMT (thankfully!) and do agree that
your friend should get a tax expert's opinion. But, if I may ask, why
does he think that he has to file the AMT? You said that he has to
file it since he has a capital loss from the sale of stock and has to
file Schedule D. I just happen to have my 1040 instruction book here at
work today, and read over the section that describes when the AMT
should be filed and nowhere did they mention anything about capital
losses or using Schedule D.
-craig
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43.3 | D + 2441 = 6251, every time. | CSCOAC::SOVEREIGN_S | but once a knight is enough(?) | Thu Feb 06 1992 09:45 | 21 |
| Hopefully, you meant Childcare Expenses, NOT child support. "Child
Support" is NEVER deductible. Childcare Expense may be used for a
childcare "credit". If you have "Childcare credit" (form 2441) and you
also file a schedule D, you have indeed found a combination that
REQUIRES the Alternative Minimum Tax (Form 6251) to be filed.
The 6251 might limit the 2441 credit amount. In english (sort of), the
logic to this is that the 2441 credit cannot lower your "total tax due"
below the 6251 "minimum" amount. If the 2441 credit is limited to
zero, then there's probably some additional AMT tax due on the 6251,
which you didn't mention. Sounds to me like there's been a mistake in
either reading the instructions or filling in the forms. Check it
again, to be sure.
The 6251 DID change again this year, both the AMT percentage and the
filing requirements. Filing a 6251 if you have a 2441 and a D is NOT
new this year.
Steve
(Who, by the way, is now officially "short" and will be gone in a
couple of weeks)
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43.4 | Never say NEVER | HSOMAI::PALO | Tarzan was a bluesman | Thu Feb 06 1992 23:03 | 8 |
|
NEVER is geographical in nature -- it was a pleasure the years I spent
in France to be able to deduct child support and now am very dismayed
at not being able to -- there should be some way to work out something
with a special trust or something ... hmmm - I'm going to ask my CPA
about that.
Rikki
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43.5 | uhhh...mumble... | CSCOA1::SOVEREIGN_S | but once a knight is enough(?) | Fri Feb 07 1992 09:06 | 5 |
| Oops. Please accept my abject apologies for being provincial...I'm
kneedeep in IRS stuff for the last few weeks, and sometimes I don't
remember to take my blinders off.
Steve
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43.6 | | VAXWRK::SWARD | Common sense is not that common | Fri Feb 07 1992 12:32 | 7 |
|
Re .4
But remember Rikki, if you where on relocation the only one that
benefitted from your deductions was DEC. (Big rathole)
Peter
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43.7 | Final Answer | RT95::HU | | Mon Feb 10 1992 09:52 | 41 |
|
Re: .2
> your friend should get a tax expert's opinion. But, if I may ask, why
> does he think that he has to file the AMT?
Because he fill schedule D and Childcare expenses.
> work today, and read over the section that describes when the AMT
> should be filed and nowhere did they mention anything about capital
> losses or using Schedule D.
He showed me the pages described that under 1040 booklet.
Re: .3
> Hopefully, you meant Childcare Expenses, NOT child support. "Child
> Support" is NEVER deductible. Childcare Expense may be used for a
> childcare "credit". If you have "Childcare credit" (form 2441) and you
> also file a schedule D, you have indeed found a combination that
> REQUIRES the Alternative Minimum Tax (Form 6251) to be filed.
Yes, it's my mistake. It's indeed Childcare Expenses, not Child Support.
And it's D + 2441 trigger the AMT (6251) filing.
> which you didn't mention. Sounds to me like there's been a mistake in
> either reading the instructions or filling in the forms. Check it
> again, to be sure.
> The 6251 DID change again this year, both the AMT percentage and the
> filing requirements. Filing a 6251 if you have a 2441 and a D is NOT
> new this year.
Steve, you are correct. He found the problem, by using the old AMT percentage
from last year's form, because he can't get this yr form yet.
When he used old percentage, he surprised he can't get any deduction from
Childcare expenses at all, and he wondering whether it's waste of time to fill
the 2441.
Thanks for your all.
Michael..
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43.8 | | HSOMAI::PALO | Tarzan was a bluesman | Wed Feb 12 1992 19:49 | 7 |
|
re: .-2 No, I profited because I was "local" not a temporary "relocatee".
It made a BIG BIG difference to my foreign taxes -- such that I paid roughly
0.5 what I paid in the States. It is simply a rip-off not to be able to
deduct it in this country.
Rikki
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