Posted by Rich-CA on April 08, 2008 at 18:19:10:
I do not have an answer since I am not a CPA, but can you float the question by a couple of other CPAs. I cannot imagine the larger investors getting hit with AMT - it makes LT cap gains kind of useless.
Alternative Minimum Tax & Large Cap Gains - Posted by Macolm
Posted by Macolm on April 08, 2008 at 16:39:35:
Help, please!
Here’s the situation. I have a relatively large long-term capital gain staring me in face - about 300K – from the sale of a fully-depreciated SFH rental property (owned 30+ years).
My accountant has advised me that this is going to kick me into the AMT bracket and therefore ALL my earned income AS WELL AS the entire capital gain is now subject to the AMT.
Silly me. And I thought that the L-T capital gain would be limited to the 15% L-T capital gains tax rate, and not subject to the AMT (even though I do understand that my earned income will now be subject to the AMT rate.)
So, which is it? Is the 15% L-T capital gain sacrosanct in a case like this, or am I going to get clobbered by losing the 15% taxabale gains limit?
With all the stuff I’ve read over the years on RE investimg, I’ve never seen this addressed nor have I ever heard anyone complain about it so I’m wondering if I’m just grossly misinformed or is my accountant nuts?
Any help, advice or suggestions will be greatly appreciated.
Mac
Re: Alternative Minimum Tax & Large Cap Gains - Posted by Natalie-VA
Posted by Natalie-VA on April 18, 2008 at 13:04:07:
Mac,
Did you get a second opinion on this? I was curious to know what you found out.
–Natalie