2008 Changes
The following changes to the AMT went into effect for 2008. For more information, see Form 6251, Alternative Minimum Tax--Individuals, and its instructions.
AMT exemption amount increased. The AMT exemption amount has increased to $46,200 ($69,950 if married filing jointly or qualifying widow(er); $34,975 if married filing separately).
AMT exemption amount for a child. The AMT exemption amount is now limited for certain children under age 24. (Before 2008, the limit applied to children under 18.) The minimum exemption amount for a child has increased to $6,400.
Tax-exempt interest on certain housing bonds exempt from AMT. Tax-exempt interest on the following bonds is not an item of tax preference and therefore is not subject to the AMT if the bonds were issued after July 30, 2008.
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An exempt facility bond for which 95% or more of the net proceeds are to be used to provide qualified residential rental projects.
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A qualified mortgage bond.
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A qualified veterans' mortgage bond. This treatment also applies to interest on any refunding bond if the bond being refunded (or, in the case of a series of refunded bonds, the original bond) is one of the bonds listed above issued after July 30, 2008.
Special depreciation allowance for qualified disaster assistance property allowed against AMT. No AMT adjustment is required for depreciation of qualified disaster assistance property that is eligible for the special depreciation allowance.
Qualified disaster loss. The 90% limit on the alternative tax net operating loss deduction (ATNOLD) does not apply to the portion of an ATNOLD attributable to qualified disaster losses.
Increase in standard deduction for net disaster loss allowed for AMT. If you claimed the standard deduction for the regular tax and it includes a net disaster loss attributable to a federally declared disaster, that net disaster loss is also allowable as a deduction for the AMT.
Kansas disaster area. The following benefits for the Kansas disaster area apply to the AMT.
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No AMT adjustment is required for depreciation of qualified recovery assistance property that is eligible for the special depreciation allowance.
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The 90% limit on the ATNOLD does not apply to the portion of an ATNOLD attributable to qualified recovery assistance losses.
Midwestern disaster areas. The following benefits for the Midwestern disaster areas apply to the AMT.
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The exemption amount on Form 8914 that is allowable for the regular tax if you provided housing for a person displaced by the Midwestern severe storms, tornadoes, and flooding is also allowable for the AMT.
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The interest on qualified Midwestern disaster area bonds is not a tax preference item. Do not include it on Form 6251, line 12.
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The 90% limit on the ATNOLD does not apply to the portion of an ATNOLD attributable to qualified disaster recovery assistance losses.
2009 Changes
The following changes to the AMT went into effect for 2009.
AMT exemption amount increased. The AMT exemption amount has increased to $46,700 ($70,950 if married filing jointly or qualifying widow(er); $35,475 if married filing separately).
AMT exemption amount for a child increased. The AMT exemption amount for a child whose unearned income is taxed at the parent's tax rate has increased to $6,700.
Qualified motor vehicle tax allowed against AMT. If you claim the standard deduction for the regular tax and it includes any state or local sales or excise tax on the purchase of a qualified motor vehicle, that tax is also allowed as a deduction for the AMT.
Tax-exempt interest on specified private activity bonds issued in 2009 or 2010 exempt from AMT. Tax-exempt interest on specified private activity bonds issued in 2009 or 2010 is not an item of tax preference and therefore is not subject to the AMT. A refunding bond is treated as issued on the date of the issuance of the refunded bond (or, in the case of a series of refundings, the original bond). However, tax-exempt interest on a specified private activity bond issued in 2009 or 2010 to currently refund a private activity bond issued after 2003 and before 2009 is not an item of tax preference.
For more inforamtion about AMT log on to: http://www.irs.gov |
