Focus CPA Group, Inc. (562)281-1040

Retirees usually are the most surprised of all taxpayers when they find themselves in the Alternative Minimum Tax. Unfortunately, there is no ?age exemption? ? if you have the right blend of income and tax deductions, it hits you just as hard as it hits everyone else. You could reach 100 and still be paying the AMT. But with proper tax advice and planning, retirees actually are well-positioned to do something about the AMT.

The income you earn on your investments plays a major role in the amount of Alternative Minimum Tax you pay. Certain types of investment income, as well as the amounts of this income, all factor into the AMT formula. And the good thing about investments, from an AMT planning point of view, is that you have complete control over them ? you can change them any time you want.

The income investors generate includes interest, dividends, capital gains, and income from real estate or partnership investments. These obviously vary depending on the investor?s portfolio allocation among cash, stocks, bonds and other types of investments. The important issues are to what extent the timing of investment income can be controlled and/or the type of investment could be changed.

Interest income generally cannot be timed.