What Causes Alternative Minimum Tax Liability?
Long-Term Capital Gains
Long-term capital gains receive the same preferential rate under the AMT as they do under the regular income tax. In theory, they should not cause you to pay alternative minimum tax. In practice, it is possible to be stuck with AMT liability because of a large capital gain. The reasons are a little complicated, but mainly have to do with the fact that a large capital gain reduces or eliminates the AMT exemption amount, which is designed to protect low-income taxpayers from having to pay alternative minimum tax.
Contact H&M to discuss how AMT affects you
Why Hienz & Macaluso LLC
As a certified public accounting firm based in the New Orleans Metropolitan Area, we are dedicated to leadership in professional accounting services and constantly seek innovative ways to better serve our clients in existing and expanded dimensions. We take exceptional pride in our ability to provide clients with a large degree of personal attention.
Current Tax Topics
Monthly Newsletter
Tools & 
Tax
Areas of Specialty