Investments - Capital Gains - Alternative Minimum Tax Planning
Wednesday, 13 January 2010 08:53 | 
Written by Veronica Carrillo |
Home mortgage interest is deductible in computing the Regular Tax, although certain limitations apply. The Alternative Minimum Tax similarly allows this deduction, but it is subject to differences in the limitations. Understanding these differences will allow a taxpayer to plan in advance to minimize the AMT impact.
Home mortgage interest is deductible in computing the Regular Tax, although certain limitations apply. The Alternative Minimum Tax similarly allows this deduction, but it is subject to differences in the limitations. Understanding these differences will allow a taxpayer to plan in advance to minimize the AMT impact.
In addition to the primary mortgage on a residence, allowable interest includes home equity loans and mortgages on a second home. For home equity loans not used to improve the residence, interest is deductible only to the extent the loan does not exceed $100,000.
Although at this writing, the hybrid tax incentive has yet to be signed into law, these particular vehicle tax incentives could ultimately save your company as much as $4000 when it acquires such a vehicle for business use. You may find it well worth your while to invest in vehicles that qualify for the hybrid tax incentive, such as the Prius.
When it comes to federal business taxes, your California business may also qualify for alternative fuel credits. Depending on the weight of the vehicle and the type of alternative fuel it uses, alternative fuel credits can mean up to $32,000 in savings in corporate taxes.
In addition, the recent federal stimulus package has included additional vehicle tax incentives for business. The amount of depreciation that can be claimed during the first year of corporate ownership of a vehicle has has been increased to $10,000 for passenger vehicles and $11,000 on light trucks and delivery vans.
Tax attorneys are one of the best friends you can ever have if you ever need to deal with the Internal Revenue Service. Depending upon the size of your problem, you may need to retain a tax lawyer to handle your particular situation.
Home mortgage interest is deductible in computing the Regular Tax, although certain limitations apply. The Alternative Minimum Tax similarly allows this deduction, but it is subject to differences in the limitations. Understanding these differences will allow a taxpayer to plan in advance to minimize the AMT impact.
In addition to the primary mortgage on a residence, allowable interest includes home equity loans and mortgages on a second home. For home equity loans not used to improve the residence, interest is deductible only to the extent the loan does not exceed $100,000.
Although at this writing, the hybrid tax incentive has yet to be signed into law, these particular vehicle tax incentives could ultimately save your company as much as $4000 when it acquires such a vehicle for business use. You may find it well worth your while to invest in vehicles that qualify for the hybrid tax incentive, such as the Prius.
When it comes to federal business taxes, your California business may also qualify for alternative fuel credits. Depending on the weight of the vehicle and the type of alternative fuel it uses, alternative fuel credits can mean up to $32,000 in savings in corporate taxes.
In addition, the recent federal stimulus package has included additional vehicle tax incentives for business. The amount of depreciation that can be claimed during the first year of corporate ownership of a vehicle has has been increased to $10,000 for passenger vehicles and $11,000 on light trucks and delivery vans.
Tax attorneys are one of the best friends you can ever have if you ever need to deal with the Internal Revenue Service. Depending upon the size of your problem, you may need to retain a tax lawyer to handle your particular situation.
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