WTF is this AMT nonsense? (taxes)

[jrz1972]

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I talked to my CPA and was told the AMT only applied if you were doing some tax sheltered type of investments or similar things the IRS deems as 'shady.'

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Your CPA is a moron and you should find another.

[moondogg]

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Hopefully the House and Senate will stop spending their time trying to ban internet gambling, and will focus their efforts instead on amending AMT before it hits a bunch of upper-middle class families that the original law in no way intended to affect...

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Hopefully people will stop trying to shift conversations to another unrelated topic, based only on the similarity that they both fall under the poster's personal list of "things about the government that piss me off".

[ShineOn]

I live in Illinois. Please explain....

I'm going to see my CPA next week, am I in for a nasty suprise?

[efficacy]

I'm paying like 5.5K on 12K winnings. [img]/images/graemlins/frown.gif[/img]

I'm living in Minnesota, and that is without the AMT. I rechecked the CPA's math and it all seems correct. [img]/images/graemlins/frown.gif[/img]

[DING-DONG YO]

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I talked to my CPA and was told the AMT only applied if you were doing some tax sheltered type of investments or similar things the IRS deems as 'shady.' I'm claiming a net of $72K from poker (so my total winning sessions are much higher) but I'm not required to pay it.

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Your CPA is a moron. AMT has to do with the amount of deductions you have in relation to your income. It is a 100% objective quantative calculation.

I'm a CPA, haven't ever worked on personal taxes professionally in my career and I (censored) know this.

And if you're referring to H&R block or Jackson Hewitt as your "CPA", they aren't. Make sure you understand this people. Block/Hewitt folks go through a month long course. CPAs have to finish college, get a masters and pass an exam that is largely considered tougher than the BAR exams for lawyers and it second only to the medical board exams (but a distant second, I will concede)

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This is correct. I am constantly amazed how often "tax professionals" are wrong about tax information. Most info is relatively easily found if you put in a little time. If you are interested in not doing your own taxes, why not just buy TurboTax? It'll cost you $70, take you an hour, and you can be pretty sure the calculations are right.

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Best post on the subject. Anyone can learn to use TurboTax and you're much better off using that than going to Block/Hewitt, they are crooks and have no idea what they're doing most of the time.

[Hellmouth]

In Virginia, you do not have to have a masters degree to be a CPA. Otherwise you are correct, and may be for other states. I have a close friend who is a CPA and she just had to have a college degree (undergrad) and pass the wicked hard exam.

Greg

[DING-DONG YO]

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In Virginia, you do not have to have a masters degree to be a CPA. Otherwise you are correct, and may be for other states. I have a close friend who is a CPA and she just had to have a college degree (undergrad) and pass the wicked hard exam.

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You're right, there are a few states that still allow just an undergrad. They're shrinking fast. VA, MA, IN are a few of the only ones left.

[Sparta45]

I'm not really a tax "expert", but I am an accountant and know a decent amount about taxes. I think you should take your taxes to somebody else (more experienced)....this guy doesn't seem to know what he's doing very well.

I'd have to research it to be sure, but I'm pretty sure that the deductions for gambling losses are not included in the AMT calculation. Therefore, even if you have (hypothetically) $1,000,000 in wins and $9,950,000 in losses (for total income of $50,000), you should still not be hit with AMT.

But like I said I'm not really a tax expert, but I don't think your guy is either....I'd go to somebody else.

[CalvinTy]

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I'd have to research it to be sure, but I'm pretty sure that the deductions for gambling losses are not included in the AMT calculation. Therefore, even if you have (hypothetically) $1,000,000 in wins and $9,950,000 in losses (for total income of $50,000), you should still not be hit with AMT.

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I'm just a lurker reading on this tax stuff.. but I just had to be a silly nitpicker here...

9 million dollars hypothetical loss against 1 million dollars in hypothetical wins, WOW! [img]/images/graemlins/wink.gif[/img]

* CalvinTy

[Sparta45]

My mistake....$950,000 in losses