Originally Posted by RIJIMMY
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Under the AMT, no deduction is allowed for personal exemptions, nor is the standard deduction.[7] State, local, and foreign taxes are not deductible. However, most other itemized deductions apply at least in part. Significant other adjustments to income and deductions apply.
Individuals must file IRS Form 6251 and corporations must file Form 4626 if they have any net AMT due. The form is also filed to claim the credit for prior year AMT.
Other individual adjustments in computing AMT include:[8]
Status Single Married Joint Married Separate Trust Corporation
Tax Rate: Low 26% 26% 26% 26% 20%
Tax Rate: High 28% 28% 28% 28% 20%
High Rate Starts $175,000 $175,000 $87,500 $87,500 n/a
Exemption 2009 $46,700 $70,950 $35,475 $22,500 $40,000
Exemption 2010 $33,750 $45,000 $22,500 $22,500 $40,000
Exemption phase out starts at $112,500 $150,000 $75,000 $75,000 $150,000
Zero 2009 exemption at $299,300 $433,800 $216,000 $165,000 $310,000
Zero 2010 exemption at $247,500 $330,000 $165,000 $165,000 $310,000
Capital gain rate 25% 25% 25% 25% 20%
Miscellaneous itemized deductions are not allowed. These include all items subject to the 2% "floor", such as employee business expenses, tax preparation fees, etc.
The deduction for charitable contributions of property is limited to the basis of the property.
The home mortgage interest deduction is limited to interest on purchase money mortgages for a first and second residence.
Medical expenses may be deducted only if they exceed 10% of Adjusted Gross Income, as compared to 7.5% for regular tax.
Many AMT adjustments apply to businesses operated by individuals or corporations.[9] The adjustments tend to have the effect of deferring certain deductions or recognizing income sooner. These adjustments include:
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