A Better Alternative

[swsop]

The new tax law not only increases taxpayers' exemption
from the alternative minimum tax (AMT), it prevents a
decrease from going into effect. This exemption acts as
a deduction from AMT income. For 2005, the AMT exemption was
$58,000 for married couples filing jointly and $40,250 for
single filers.

For 2006, the AMT exemption has been raised to $62,550 (joint
returns) and $42,500 (single filers). However, the AMT
exemption phases out once your AMT income exceeds certain
levels. This phaseout begins at $150,000 on joint returns
and $112,500 for single filers. As a result, couples with
over $400,200 in AMT income and singles over $282,500 will
have no AMT exemption in 2006.

What's more, this increase in the AMT exemption is only temporary.
In 2007, the exemption might be higher, lower, or the same.
Therefore, it's vital that you meet with your tax pro near the
end of 2006 to determine the best strategy for future years.

SWSOP

[Wheels]

Therefore, it's vital that you meet with your tax pro near the
end of 2006 to determine the best strategy for future years.

After reading these posts from swsop, I am more convinced than ever that the U.S. tax code is absolutely ridiculous and an unreasonable burden on our citizens. We need to move to a flat tax or a consumption tax.

Dave
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