In all things that have potential cost except in taxes, minimum is a good thing. So, we always found a hidden meaning in the name of this tax, as in a high-income tax State such as New York, especially with the high standard of living here, that most anyone who could afford to live here ran the risk of being minimized.
That was because for each individual client, we needed to run a calculation of both the regular as well as the minimum tax and have them pay the higher amount. Many times, minimum was higher.
Well, the new tax law guts the cornerstone of the issue for those in high Income tax States, as it removes that deduction altogether. So no longer are they deductible solely for the regular tax and in one swoop, many are relieved of the alternative, only to now pay a higher regular tax instead.
Two of the other most common causes will also no longer apply: the personal exemption and other itemized deductions. When you combine a truly enhanced grace level AMT exemption, plus substantially elevated phasing out of the exemption, it will now be unusual for taxpayers to pay the “Alternative Minimum.”
Do you need an extension to file tax returns? Czarnowski & Beer is currently offering a complimentary, no-obligation tax return evaluation. To take advantage of this limited time offer, visit our tax return offer page or contact us at info@czarbeer.com or call (212) 397-2970 and we will be happy to help you and answer your questions.
Please note, this offer is subject to change or expire without notice on or before October 15, 2018. Please confirm with Czarnowski & Beer if you are reading this blog post after this date. Thank you.