Michaela Cavallaro
Unfortunately, planning for the AMT is a complex business. "It's like standing on your head," says Tom Scanlon, a CPA and certified financial planner at Borgida & Company, P.C., in Manchester, Conn. "Typically in tax planning we talk about deferring income and accelerating deductions. But for AMT purposes, you take the income and defer the deductions in order to lower your liability."
If you're at risk for AMT, you might, for example, consider pushing any real estate tax payments due at year-end into 2008. Other tactics include taking prepayment of your salary or bonuses and deferring payment of employee business expenses.
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