question on AMT:
My wife have paid AMT for 6-7 years straight, and I want to know if there is any scenario over a 2 year planning
period where it could be avoided for one year. I was told one must try to shift deductions
to a single year, and take the standard deduction
the next year.
- Right now we file separately, since Ohio state
makes this advantageous at the state level. She barely enters AMT, paying $2000 extra with a salary of $230K, and is in the 33% federal
bracket. Since her income
is double mine, I file all the charity donations
and mortgage interest
under her name.
- I am basically in the same 33% bracket with $115K salary + $30k capital gains
, paying $3400 AMT.
- We are both giving to 401K Roth accounts, and are ages 43 and 45. There may be a case to use the traditional 401K, but my adviser said future tax rates
are too uncertain.
I am able to shift these annual items to a different tax year: $3000 charitable donations, $5000 capital gains, $5000 investment adviser expenses, and $3400 mortgage interest.
Is there a way to reduce my AMT over a two year period?