Expanded Chart and Overmatter

Posted on January 10th, 2014 at 10:53 AM

By Robert L. Moshman

The perpetually problematic alternative minimum tax (AMT) has been addressed numerous times by Congress. Instead of providing another “patch,” ATRA adopted the higher exemption level from 2011 and indexed it for inflation going forward. As a result, it was projected that the AMT would effect 4 million taxpayers for 2012 instead of 30 million. For 2014, an exemption of $52,800 applies to single taxpayers ($82,100 for joint filers). 

The top AMT rate of 28% applies above a threshold amount of $182,500. The AMT doesn’t effect taxpayers who are in the lower brackets, of course; with a rate of 28%, it won’t effect taxpayers in the top brackets, i.e., those paying 35% or 39.6%. As a general rule of thumb, the taxpayers most likely to be effected by the AMT are those with income between $250,000 and $750,000 who take advantage of many tax deductions.

Affected taxpayers should have professionals calculate the likely income tax without the AMT, as well as with the AMT, and then see how much tax can be avoided or deferred by deferring income to next year, accelerating expenses to reduce current
business income, or increasing retirement plan contributions. Although these adjustments are often made toward the end of the year, it can be very useful to project income and expenses at midyear...

For more, read the whole PDF here.

Related Attorneys: James J. Eccleston


Return to Archive



Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.


September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.