Many personal financial experts serving the wealthy are eager to provide ideas on how to respond to this new changes on Alternative Minimum Tax.
Just heard on BNN Bloomberg that you can recover the AMT? What? Why? Didn’t know tax can be recovered? Why lobby this piece in? Must be someone in the wealth management industry. 😊 This really showcase their niche expertise to help clients recover the tax already paid. Are we supposed to simplify tax codes? Why make it complicated? Job creation for tax accountants? LOL.
Here is a detailed explanation by RBC with detailed example. There are two says to calculate the tax. One is the traditional way and the other is AMT. If AMT was paid, the difference between the AMT and the traditional way can be carried forward up to 7 years. If one of those years, the tax of the traditional way is more than the AMT, the difference can be refunded without interest. Not easy to understand, eh? The tax accountant must feel so validated. 😊
A raise of AMT from 15% to 20.5% makes sense. Tt least it is a step forward.