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Strategies & Market Trends : IRS, Tax related strategies--Traders -- Ignore unavailable to you. Want to Upgrade?

To: Colin Cody who wrote (454)	8/20/1998 1:55:00 PM
From: WallStBum	Read Replies (1) \| Respond to of 1383

Going "delinquent" on 1/3rs of the State tax (after an extension until October 15, 1999) can spread it over three years easily too. We'd get nailed in penalties though. MN Nice (ggg) dax

To: Colin Cody who wrote (454)	8/20/1998 2:03:00 PM
From: Kaye Thomas	Read Replies (1) \| Respond to of 1383

Taking a big withdrawal from taxpayer's IRA or other Pension plan (if of a high enough age) can get that money out in effect "tax free" when there's a big AMT issue. Maybe I'm missing something, I don't see how that money would come out tax free. Seems to me it would increase both taxable income and AMTI by equal amounts. This would potentially be an opportunity to withdraw the money at the 28% rate that applies under the AMT, so it may be good planning if the 10% early withdrawal penalty doesn't apply and the money's otherwise going to be subject to 39.6% tax. There's still a chance of more tax legislation later this year, and AMT reform could be part of that package. I sure wouldn't count on it, but at the same time I wouldn't do anything too radical when there's a chance I'm shooting at a moving target. For those who are interested, there's some general information on this topic at: Guide to Alternative Minimum Tax fairmark.com But no magic wand to solve this problem! Kaye Thomas, author Fairmark Press Tax Guide for Investors fairmark.com