# 7 SCREWY TAX – THE ALTERNATIVE MINIMUM TAX

You can rally get shafted despite all your tax planning by the infamous ALTERNATIVE MINIMUM TAX or AMT. Individuals with a higher income may be subject to the Alternative Minimum Tax. Under the tax law, certain tax benefits can significantly reduce a taxpayer’s regular tax amount. The AMT sets a limit on those benefits. If…

#8 CAPITAL LOSSES

In December 2010 The Sarasota Herald Tribune published my version of the top 10 Screwiest Tax Provisions.  We have been updating that list here:  Screwy income tax provision – #8  Tax Planning: Deducting Capital Losses The annual capital-loss limitation is $3,000. This one has been around for a long time and  never made any sense. You…

#9 MEDICAL DEDUCTION TIPS

In December 2010 The Sarasota Herald Tribune published my version of the top 10 Screwiest Tax Provisions.  Over the next ten weeks I am going to update that list here:  Screwy income tax provision – #9  Tax Planning: Medical Deductions: The 7.5 percent medical deduction limit: The medical deduction has been limited to the excess…

#10 IRA Required Minimum Distribution Rules

List of screwy income tax provisions – #10  IRA Distribution Alert!  Required Minimum Distribution or “RMD rules” If you turned 70 1/2 this year and have funds in either one IRA or several IRA accounts you need to spend some time studying this really screwy but deadly tax provision. Required Minimum Distributions (RMDs) generally are…

Corporate Tax is Obsolete

#11 Ever since the Hudson Bay companies, corporations have been in our life.  They began and continue to be a method for accumulation of capital by investors who wish to create a new company, finance a venture and launch new ideas.  They never were intended to be taxable entities.  Unfortunately our government insatiable appetite for…

Zero Corporate Taxation

You can hardly pick up a paper without seeing articles about whether corporations are paying their fair share of taxes or are they avoiding taxation with offshore locations and companies.  Look at the recent brouhaha about Burger King. Also, you can argue endlessly about what is the effective percentage of tax really paid by corporations,…