Podcasts about Alternative minimum tax

In this episode of The Liquidity Event, AJ and Shane talk non-qualified stock options (NSOs), explaining the common mistakes people make, tax implications, and strategic approaches to maximize your equity compensation. Key Timestamps: 0:00 - Intro and a few laughs 3:45 - The biggest mistake with NQSOs 6:45 - How taxation works upon exercise 10:15 - NQSOs and Alternative Minimum Tax 15:45 - Multiple grant strategies: the Goldilocks approach 19:45 - When to exercise and hold vs. wait 23:30 - The "least regret" strategy 26:15 - Overconfidence and substantial risk of forfeiture 28:45 - Real-world Reddit question about forgotten options Connect with us: Email: liquidityevent@brooklynfi.com Ask us financial questions via voicemail: memo.fm/liquidityevent Don't forget: please like, subscribe, and leave a review! #EquityCompensation #StockOptions #NQSOs #FinancialPlanning #TaxStrategy  

This third lecture expands on prior lessons about Federal Income Tax by delving into more complex issues, the strategic use of tax rules, and practical exam-oriented approaches. It begins by recalling the foundational principles—gross income, deductions, credits, and reporting—then shows how these concepts apply at a deeper level.A key section addresses business entities and how their choice affects federal taxation. Sole proprietorships are reported on an individual's tax return (Schedule C), whereas partnerships and multi-member LLCs pass profits and losses through to partners, who then file informational returns and get Schedule K-1 forms. S corporations, requiring a special election, also pass income through but may help certain owner-employees split compensation between salary (subject to payroll tax) and distributions (not subject to self-employment tax). C corporations are taxed at the corporate level and may trigger “double taxation” when earnings are distributed as dividends.Moving on, the lecture explores tax planning and distinguishes it from illegal tax evasion. Legitimate planning may involve deferring income, characterizing gains as capital instead of ordinary, or selecting an entity structure that reduces the combined tax burden. However, transactions without economic substance or aimed solely at generating artificial losses cross into forbidden territory, raising red flags for the IRS under doctrines like “substance over form” or “economic substance.”The lecture highlights special planning considerations such as the timing of deductions and income, the use of Net Operating Losses (NOLs) to offset future (or past) taxable income, and how estate and gift taxation interplay with income tax (e.g., basis step-ups for inherited property). This discussion emphasizes how tax law's annual accounting framework can be leveraged—through year-end strategies, for example—to manage a taxpayer's marginal rates.A substantial part of the lecture focuses on exam strategy. Students learn to methodically identify the type of income (wages, capital gains, pass-through K-1 amounts) and check for relevant exclusions, permissible deductions, and potential credits. They must verify whether specialized rules (like depreciation recapture or the Alternative Minimum Tax) arise, and see if a business expense is legitimate or a personal cost disguised as a deduction. Clear IRAC-style writing is recommended: state the Issue, the governing Rule (citing relevant Code sections or doctrines), apply the facts carefully, then conclude.An extended hypothetical ties these advanced topics together, showing how owners in a partnership or LLC might claim or lose deductions, track basis, or consider an S corp election. By analyzing such scenarios step by step—determining entity-level vs. individual taxation, differentiating legitimate business expenses from personal ones, and weighing additional complexities like basis or recapture—students refine their abilities to address multi-layered fact patterns.In closing, the lecture underscores that while earlier sessions covered fundamentals (formation, exclusions, deductions, and credits), these advanced concepts highlight the strategic dimension of tax law. By mastering how business entities differ, how lawful planning can reduce taxes, and how to identify unscrupulous maneuvers, students can confidently tackle intricate exam questions. The central theme is to remain systematic and fact-driven, ensuring that each transaction meets the relevant legal requirements.

The Alternative Minimum Tax (AMT) can be confusing, especially when selling stocks or participating in employee stock ownership plans (ESOPs). Dr. Friday explains how AMT kicks in when W-2 forms only show the basis, leaving capital gains unreported. Avoid IRS troubles by learning to account for both AMT and capital gains in your tax filings. Stay ahead with these essential tips. Transcript: G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment. The Alternative Minimum Tax (AMT)—people often forget about this. It often kicks in when you sell stocks from a business, such as through an ESOP program. You might think the W-2 includes everything, but it only shows the basis. Capital gains still need to be reported. This is when AMT often applies and lands people in my office dealing with the IRS. Don't forget to file your capital gains and account for AMT. Need help? Call us at 615-367-0819. You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.

Why Understanding Tax Planning is Key to True Wealth? | Master Investor #freedomGet our products and tools to build wealth today: https://bit.ly/masterinvestorpartnersUse the referral link https://crypto.com/app/68rxkbmmfc to sign up for Crypto.com and we both get bonus to start investing in crypto with ease.Resources, courses, eBooks and more: www.masterinvestor.moneyJoin the Quantum club opportunity here: https://bit.ly/quantumclubmembersMake sure to subscribe, share and comment.Start a newsletter for any niche and monetize it in several different ways through passive income, use this platform: https://www.beehiiv.com/?via=masterinvestorThere is just one method we should invest if we intend to do so. The Master Investor method of investing is to make passive income.Debt is frequently compared to a loaded pistol. Administering it without proper training can lead to disastrous consequences. It can be a really useful tool if we use it properly with our education.What does it mean, and why do we need tax planning?Summary:Our company's end-of-year taxes are a hidden treasure trove of opportunities.Through end-of-year planning, we can permanently alter our taxes with the assistance of our tax counselor or accountant. Not all professionals are equal. Discover how to choose the right ones.Businesses that lack a proper plan are doomed to fail due to not being profitable. Financial advisors get in touch with their clients at this time of year to offer year-end tax planning advice. However, we might be asking ourselves, "Why is preparing so crucial at this time of year?Reason #1: Alternative Minimum Tax or AMTThe Alternative Minimum Tax, or AMT for short, is imposed on an increasing number of individuals.Reason #2: Estimated payment penalties are the second reasonA person is most likely paying estimated taxes if he or she receive money from sources other than their usual job.Reason #3: A year with a high or low salaryPeople are either having a really awful year or an exceptionally excellent one, and that much is true.ConsideringIt's time to take think about our business' health now that we know where our company stands.Ensure the success of our companyAnd that's all. Planning our business's end-of-year taxes successfully is that easy.Finish reading article here: https://masterinvestor.substack.com/p/why-understanding-tax-planning-isGo to www.masterinvestor.education for more services and products.Starting our business planning for the upcoming year toward the end of the year is ideal. Since we are already handling the books, why not do some research to ensure that our company thrives in the upcoming year?We can start out well with the following checklistOrganize the books.Recognize our businessFinding out how our company and brands are doing right now is the next item on the list. This may be difficult for some people, but it's easy for others. But before we can do anything else, we must finish this stage, regardless of whether we are a small business owner who can afford a bookkeeper or we are one of those people who cram a glovebox full of receipts.SUBSCRIBE, COMMENT, AND SHARE. Get in our inner circle with one of a digital course to help anyone build the asset column through sound investing: htttps://www.masterinvestor.moneyGet our ebooks: 1- How to build cash flow with the internet? Turn Passive Income On: https://www.masterinvestor.money2- The 10 new Rules Of Money: https://bit.ly/10newrulesofmoney3- How to invest in crypt to build wealth? Understanding Bitcoin and Blockchain: https://bit.ly/howtoinvestincryptotobuildwealthYou can get them on Amazon too if you would like too, available on the kindle app.Money is just an idea backed up by confidence. An asset puts money in your pocket. A liability takes money out of your pocket.The simple definition of a fake asset is one that promises to make us richer but in actuality robs us blind.

My Christmas gift to you this year is an episode full of tax tidbits that you can share at your holiday party - check out this episode for my rundown of the tax issues that made the news for me in 2024:10. The Taxpayer's Ombudsman Report9.  Auditor General's Report - the CEBA Program8.  CRA New Audit Powers7.  Digital Services Tax6.  Where do we stand on Alternative Minimum Tax?5.  The GST/HST Holiday4.  Audits on COVID benefits3.  Bare trusts...2.  Capital Gains...1.  The Fall Economic Statement - stay tuned for December 16th!Merry Christmas and Happy New Year!  I will be back with Season 6 of The Tax Chick Podcast in March 2025!RESOURCES DISCUSSED ON THIS EPISODE:Taxpayer's Ombudsman Report (2024)Auditor General ReportDigital Services TaxGST/HST HolidayBare Trusts - exemption for filingHERE ARE SOME OTHER WAYS TO CONNECT WITH ME:My website! Email: thetaxchickpodcast@gmail.com@tax.chick (IG) LinkedInBe a "Tax Chick VIP" 

Send us a textMonisha Santamaria and Nick Tricarichi of KPMG discuss the scope of the latest guidance on the corporate alternative minimum tax and its impact on tax and accounting professionals.Listen to our previous episode on CAMT: Navigating New Guidance on the Corporate Alternative Minimum TaxFor more coverage, read the following in Tax Notes:Exempt Orgs Get Temporary Break From Filing Corporate AMT FormCorrections Coming for Corporate AMT Proposed RegsTreasury Downplays FTC Timing Concerns in Corporate AMT RegsMore Corporate AMT Safe Harbors Are on the TableAnalysis: CAMTyland Adventures, Part V: Coping With CAMTyland GriefFollow us on X:Chandra Wallace: @ChandraSWallaceDavid Stewart: @TaxStewTax Notes: @TaxNotes***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner: Jordan ParrishAudio Engineers: Jordan Parrish, Peyton RhodesGuest Relations: Alexis Hart

In this episode, panelists discuss the technical aspects and potential implications of the proposed CAMT regulations. 

As we settle into September and the start of fall, it's time for another edition of “Life in the Tax Lane”!  Joe, Cait and Hugh are back for this month's 10-minute podcast covering key updates on draft legislation related to capital gains inclusion rate, trust reporting, alternative minimum tax, and more.Topics discussed:Capital Gains Inclusion Rate Increase – Draft Legislation  Trust Reporting – Draft Legislation Trust Distributions Violating Trust Terms Alternative Minimum Tax – Draft Legislation  Post-Mortem Losses – Draft Legislation  Collection of GST/HST by Accommodation PlatformClick here to view sources.Like what you are watching? Join our mailing list at videotax.com/mailing-list to stay in the know with new video releases, products and upcoming promotions.Life in the Tax Lane is for general information purposes only and deals with dynamic, time-sensitive and complex matters that may not apply to particular facts and circumstances. The information provided should not be relied upon as a substitute for specialized professional advice in connection with any particular matter. For more information visit videotax.com/disclaimer. ©Video Tax News Inc. 2024, All Rights Reserved.

Vanguard Hosts Brad Wright and Chris Boyd are joined by Ted Dinucci, an investment strategist with Vanguard's Investment Advisory Research Center, the team tasked with creating thought leadership for their intermediary advisory partners across a range of investment, wealth management, and financial planning topics. They discuss: -Individual bonds vs bond funds - How to utilize each for income during retirement -Which is better during a falling interest rate environment Learn more at: https://advisors.vanguard.com/advisors-home Join Vanguard at the following New England locations: -Vanguard RIA Social:  Envio on the Rooftop – Portsmouth, NH:  Wed Aug 21 st   4:30pm –7:30pm   PLEASE RSVP -Vanguard RIA Social:  Granary Tavern – Boston (Financial), MA:  Thurs Aug 22 nd 4:30pm-7:30pm   PLEASE RSVP -Vanguard RIA Meet & Connect Luncheon – Riverbend (Marriott) Newton, MA:  Thurs Aug 22 nd  12pm-2pm PLEASE RSVP - Vanguard Symposium - Marriott Long Wharf – Boston, MA:  Thurs, Oct 24 th  9:30am–3pm:   RESERVE A SPOT NOW and you'll receive an email invite. Additional details to follow. Or at the FPA-NE NexGen event: - FPA NE NexGen Presents Build Your Client Service Team (formally Cross Industry Networking): Lily's Boston (Financial) Thus, Aug 8 th  5pm – 7pm - one of FPA's most popular events of the season! https://lp.constantcontactpages.com/ev/reg/t3jvpz5 [lp.constantcontactpages.com]   Investment Advisory Research Center OCTOBER 2022 Individual bonds versus bond funds: Our thoughts on the advisory practice and client outcomes Key takeaways • Forecasting markets accurately is difficult. A much more reliable prediction to make: What questions clients will ask during periods of rising interest rates. Inevitably, rising rates environments prompt a flood of inquiries about whether advisors and their clients are better off purchasing individual bonds or pooled products, such as mutual funds and exchange-traded funds (ETFs). These questions stem directly from the “principal at maturity” myth, which argues that bond funds will sell bonds at a loss when rates rise, while portfolios of individual bonds can be held to maturity and avoid losses. • Ultimately, bond funds operate the same way as portfolios of individual bonds when cash flows are being reinvested. However, the former generally offer greater return opportunities, lower transaction costs, and higher liquidity—as well as time savings for your practice—than comparable portfolios of individual bonds. Thus, advisors pursuing portfolios of individual bonds should expect to pay greater direct and indirect costs for maintaining complete control of client bond portfolios. The price tag for this control is higher for buyers of municipal and corporate bonds than for buyers of U.S. Treasuries. • Given the higher risks and costs associated with portfolios of individual bonds, and the time they take to manage, most advisors are better served by low-cost mutual funds and ETFs. Particularly in the case of municipal and corporate bonds, it is likely that only clients with enough resources to build a portfolio of comparable scale to a mutual fund (or ETF) can afford to pay the costs for these control advantages. • Consider this report as a resource to inform your client discussions—either for proactive conversations about fixed income portfolio decisions, or to satisfy questions and concerns clients bring to you. For clients who may be partial to holding individual bonds for emotional reasons, the following analysis provides you with empirical data points that could guide them to a more beneficial approach. We also believe the strategies outlined herein can ultimately empower you with more time for higher-value activities, such as deepening client relationships. Authors: Ted Dinucci, CFA | Chris Tidmore, CFA, CPA | Chris Pettit, CFA Acknowledgments: The authors extend our thanks to Elizabeth Muirhead, CFA, and Edward Saracino for their contributions to this report, and to Donald G. Bennyhoff, CFA, and Scott J. Donaldson, CFA, for their prior research, which greatly informed this paper. 2 Introduction The market and economic backdrop today appear highly uncertain, with the highest inflation in 40 years, a series of large rate hikes from the Federal Reserve, and Russia's war in Ukraine, to name a few factors. Understandably, the confluence of these events has led to significant market volatility. It's also led some investors to question the merits of pooled bond vehicles and to ask whether they may be better served by directly owning a portfolio of individual bonds. In some cases, there can be benefits to owning individual bonds, for instance, a nominal immunization strategy where the goal is matching portfolio cash flows to liabilities. However, for the vast majority of advisors and the investors they serve, the likely appeal of individual bonds is largely based on the principal at maturity myth, and embracing it is likely to diminish returns, diversification, and return on your time. This paper offers our perspective on the primary advantages bond funds have over portfolios of individual bonds in the three key regards of returns, diversification, and return on your time (in exchange for less control over individual securities).1 More important, for the vast majority, accessing fixed income via low- cost active or passive funds is likely to provide better outcomes than the direct ownership of individual bonds—even with the hurdle of ongoing management fees. However, we'll first address the flaws in the principal at maturity myth, since this misconception is what generates so much interest in the topic. FIGURE 1. Benefits of choosing either a bond fund or individual bond BOND FUNDS INDIVIDUAL BONDS INCREASED CONTROL ✓ INCREASED DIVERSIFICATION ✓ INCREASED RETURN OPPORTUNITIES ✓ LOWER TRANSACTION COSTS ✓ 1 Vanguard 2017. 3 FIGURE 1. Benefits of choosing either a bond fund or individual bond BOND FUNDS INDIVIDUAL BONDS INCREASED CONTROL ✓ INCREASED DIVERSIFICATION ✓ INCREASED RETURN OPPORTUNITIES ✓ LOWER TRANSACTION COSTS ✓ The principal at maturity myth Holding an individual bond to maturity offers little to no financial benefit to you or your clients versus a pooled product when cash flows are reinvested, as often occurs in laddered individual bond strategies.2 Both portfolios operate in a similar way, but the laddered portfolio is likely to incur greater trading costs and have less diversification. The way that advisors account for laddered bonds in their client statements—by not marking the bonds to their current value, in order to avoid recognizing a paper loss—helps to reinforce the behavioral bias and may mitigate business risk for the advisor. Ultimately, bond prices are inversely related to changes in interest rates: When interest rates rise, the bond's price falls, and vice versa. This is because a bond's coupon payments are typically fixed at issuance, leaving price as the only variable that can be adjusted to make the bond's yield competitive with that of newly issued bonds of similar risk and maturity. This is illustrated in Figure 2. If 10-year bonds are currently yielding 4%, the price of a 2% coupon bond—to be competitive—must decline to a level that results in a 4% yield-to-maturity. In this example, that price is 83.65% of the face value (or $836.50 per $1,000 face value). The 2% bond would provide the same return as the 4% coupon bond trading at par, but some of the return would come from the bond's appreciation from $836.50 to its $1,000 value at maturity, as opposed to the coupon payments. This price adjustment punctures the common myth that holding an individual bond to maturity will provide a financial benefit to your clients. Absent transaction costs, when interest rates change, prices adjust so that total returns will be equal from that point forward, regardless of whether the bond is held to maturity or sold at the prevailing market price with the proceeds reinvested. FIGURE 2. How bond prices adjust to keep yields-to-maturity the same A comparison of hypothetical bonds with 10 years to maturity Coupon (annual interest payment) 6% 4% 2% Market price as a percentage of face value 116.35% 100% 83.65% Yield to maturity 4% 4% 4% Source: Vanguard. This hypothetical illustration does not represent any particular investment and the rate is not guaranteed. FIGURE 3. Total returns closely match starting yields, regardless of whether prices are above (or below) par 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 Forward annualized return versus starting yield Starting yield Forward annualized return when starting price is above par Forward annualized return when starting price is below par Figure 3 demonstrates this point by comparing the forward annualized return for the Bloomberg U.S. Aggregate Bond Index, adjusted for duration, with its starting yield. Here, it is readily apparent that future returns closely track starting yields. Moreover, the narrative doesn't change whether the index is trading above or below par. Therefore, when evaluating bonds with the same characteristics but with different coupon payments, it is always best to compare their yields to maturity.3 Notes: Returns represent the annualized return on the Bloomberg U.S. Aggregate Bond Index using monthly data for the period that aligns with the index's starting modified adjusted duration, rounded to the nearest month. For instance, if on December 31, 2005, the duration on the index was 5 years, the forward annualized return would be from January 1, 2006, to December 31, 2010. Yields represent the index's yield to worst (YTW) at the start of each calculation period. YTW is a measure for the lowest possible yield that may be earned on a bond absent the issuer defaulting. The last observation in the figure is September 30, 2015, because after that date the index's starting duration is longer than the time series. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Sources: Vanguard analysis of Bloomberg data, as of March 2022. 2 Laddering refers to building a portfolio of bonds with a range of maturities. 3 Yield-to-maturity is the percentage rate of return on a bond, assuming that the bond is held to maturity. For bonds that may be called prior to their stated maturity, yield-to-worst is a preferable measure, as it accounts for the bond's call feature and represents the lowest possible yield that may be earned assuming no default. 4 As mentioned, this principal at maturity myth typically surfaces only when interest rates rise or are expected to rise. If rising rates mean there is a financial benefit to holding bonds to maturity, then falling rates should mean there is a benefit to selling them and reinvesting the proceeds in new bonds. Thus, an active trading strategy would be preferred over a simple buy-and-hold, laddered bond portfolio to take advantage of the market inefficiency. Ironically, this environment has been the norm for the past 20-plus years, yet the trading concept has not been endorsed by the investment community. One doesn't hear that when interest rates are falling, an open-end mutual fund or ETF with no set maturity date is the preferred structure. Thus, the appeal of holding a bond to maturity is likely emotional, as by not selling a bond at a discount to par, your clients are able to avoid the mental roadblock of “recognizing” a loss. Rather than let this behavioral bias win, advisors can seize this as an opportunity to flex their coaching muscles and leverage the trust they've built with clients to help produce better outcomes. Consider this analogy: Just because you chose not to sell your house when prices dipped does not mean it's worth more than the home of your neighbors, who did sell. The same logic applies to fixed income—whether the bonds are held individually, in a bond fund, or in a separately managed account (SMA).4 Diversification can mean higher returns for similar levels of risk In fixed income investing, diversification among issuers, credit qualities, and term structures is a primary consideration for municipal and corporate bonds. For laddered bond portfolios, issuance calendars do not offer consistent access to all types of bonds. On the contrary, with bond funds, greater diversification is possible because of the larger pool of investable assets and the continuous investment in new offerings. This, coupled with the professional staff needed to conduct risk, trade, and credit analysis allows funds to seek return opportunities farther out on the credit quality spectrum than is possible for an advisor. In the case of the latter, their clients may be seriously affected if even one issuer in their (much smaller) portfolio encounters problems. In the case of corporate bonds (and munis), the dynamic nature of credit risk makes it essential to diversify issuer- specific risk. The price volatility that results from a change in an issuer's credit rating is typically asymmetrical: When a credit downgrade occurs, a bond usually will drop much further in price than it would rise on news of an upgrade. This means that for holders of individual corporate bonds, the penalty for choosing a bond that is downgraded is usually greater than the reward for choosing one that gets upgraded. Professional fund managers who are fully focused on credit analysis may be better suited to spot these trends sooner and avoid the negative effects of downgrades and defaults. FIGURE 4. Incremental pickups in yields available relative to AA rated corporates Average option-adjusted spread Average cumulative defaults 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% AA rated Broad investment-grade Credit quality 0.98% 0.55% As a result, many individual bond portfolios exhibit a higher-quality bias relative to bond funds because of the inability to fully benefit from diversification. As shown in Figure 4, higher return opportunities, in terms of incremental yield, are available beyond AA rated corporates to compensate for the low, but always possible, risk of default—even when staying within the corporate investment-grade universe. A more diversified approach that spans the spectrum of investment-grade corporates can translate into a meaningful increase in yield without sacrificing the primary role of high-quality fixed income in a portfolio—acting as a ballast to risk assets. It should be noted that diversification of credit quality can also be achieved through passive exposure. Notes: Average option-adjusted spreads (OAS) cover the period of January 1997 to April 2022. AA rated as represented by ICE BofA US Corporate Index Option-Adjusted Spread; and broad investment-grade as represented by ICE BofA US Corporate Index Option-Adjusted Spread. OAS is a measure of the difference in yield of a bond and the comparable risk-free rate, adjusted to account for any embedded option. Analysis begins with AA rated corporates, as there are only two AAA rated corporate issuers. Average cumulative defaults are calculated by FitchRatings and represent the 10-year average cumulative defaults for the period of January 1990 to December 2021. Default rates are calculated on an issuer or security basis as opposed to dollar amounts. Sources: Federal Reserve Bank of St. Louis, FitchRatings, and Vanguard analysis, as of April 2022. 4 Separately managed accounts are investment portfolios that are directly owned by an investor and managed by a professional investment firm. 5 FIGURE 5. Growth of hypothetical $1 million initial investment from January 1997 Ending wealth in (million USD) $3.2 $3.3 $3.4 $3.5 $3.6 $3.7 $3.8 $3.9 $4.0 AA corporates Broad I-G corporates $4.1 $4.2 Ending wealth with AA corporates Excess wealth with lower quality Figure 5 translates the lost return opportunities in Figure 3 into actual excess wealth created by expanding the investment opportunity set beyond AA rated bonds.5 For a long-term investor, being broadly invested in investment-grade corporates would have produced an additional $400,000 of nominal wealth, given a hypothetical, initial $1 million investment in 1997, relative to the same investment in AA rated corporates. Moreover, through broad diversification, as an advisor, you would be able to increase your client's long-term expected returns for their fixed income holdings, while significantly reducing single-issuer risk and still maintain high overall credit quality. Notes: Figure assumes a hypothetical initial $1 million investment on January 1, 1997, and held until April 30, 2022. AA corporates as represented by ICE BofA 5–10 Year AA US Corporate Index; and broad I-G corporates as represented by ICE BofA 5–10 Year US Corporate Index. Sources: Vanguard analysis of Morningstar data, as of April 2022. Past performance is no guarantee of future returns. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index. Transaction costs are real, but often go overlooked All bond portfolios incur costs. Though the management cost component often receives the lion's share of attention because it is readily apparent and known in advance, it also represents only one part of the equation. Less scrutinized, but similarly detrimental to long-term financial outcomes are transaction costs (e.g., bid-ask spreads). Ultimately, bid-ask spreads tend to vary by trade size and bond sector, and the size of the spread is typically larger for small transactions. Bond mutual funds and ETFs buy and sell large quantities of bonds, and these large transactions can command higher prices for sales and lower prices for buys. So long as the size of the spreads paid or received are inversely related to purchase lot size, bond funds have a transaction cost advantage over individual bond portfolios. The benefits of scale are most significant in the municipal bond market, but still relevant and tell a similar story to that of corporates. Figure 6 illustrates this point. It shows that in the municipal bond market, the spread for a retail trade (less than $100,000 per bond) on average has been consistently higher than that for an institutional trade. Specifically, between January 2019 and April 2021 the effective spread for transactions with a par value between $25,001 and $100,000 averaged 56.4 basis points (bps), while transactions with a par value of over $1 million averaged 20.2 bps. This differential translates to lower total return for clients who are not able to transact at scale.6 Additionally, large firms, such as Vanguard, are able to get the broadest access to bonds in the primary market, so it's not only about the size of the trade and lower costs, but also what bonds one gets to purchase. This is especially important as there tends to be a drop-off in liquidity as time passes from issuance. FIGURE 6. Spreads are significantly wider for retail trades relative to institutional trades (bps) $10,000 or less $10,001- $25,000 $25,001- $100,000 $100,001- $1 million $1 million+ 20.2 56.4 35.5 63.6 81.9 In the end, higher spreads translate into lower returns. Whether creating a taxable or tax-exempt bond portfolio for a client, the basic decision comes down to this: Does the fund expense ratio detract less from the portfolio's total return than (1) the return surrendered by a higher credit-quality bias, if one exists, (2) the default risk, if there is no quality bias, or (3) the additional transaction costs? It would be rare for the fund expense ratio (particularly in the case of a lower-cost bond fund) to be larger than the other costs. Notes: The above figure shows the average effective spread for municipal bond transactions of various sizes from January 2019 to April 2021. Effective spread is a measure of customer transaction costs and is computed daily for each bond as the difference between the volume-weighted average dealer-to-customer buy and sell price, and is then averaged across bonds using equal weighting. Sources: MSRB data and Vanguard analysis. 5 Though an advised client's fixed income portfolio is unlikely to be comprised of only intermediate-term (5- to 10-year maturity) U.S. corporate bonds. 6 As a simple example, if constructing an initial bond portfolio with an average duration of five years and transaction costs of 50 bps, it would translate to 10 bps per year. 6 Control of the portfolio One, or perhaps the only, advantage of self-directed individual bond portfolios and, to some extent, SMAs over pooled vehicles is the owner's ability to influence portfolio decisions. The motivation for maintaining control generally falls into three camps: strict portfolio guidelines that place firm restrictions on portfolio characteristics, such as credit-quality (e.g., all-AA portfolio) or limits on derivatives usage; matching portfolio cash-flows with specific liabilities (e.g., cash-flow matching); and tax concerns. Given the inflexibility of the first, and presumably, high-level of certainty of the second, we'll focus on the potential tax considerations, as certain common beliefs may be overstated and therefore warrant a discussion. Regarding taxes: Because clients directly own the bonds in an SMA or a laddered bond portfolio, as their advisor you can use any net losses from individual bond positions for tax purposes to partially offset your client's earned income or to offset realized capital gain liabilities from other investments. A mutual fund or ETF, on the other hand, cannot pass through realized losses to its shareholders. Instead, the fund uses realized losses against realized gains, and carries forward any excess losses to be used against future gains. Although this may defer the pass-through of losses, it provides long-term tax efficiency to the pooled structure. In addition, as the advisor, you have a further option: You can sell your clients' fund shares to realize a loss where applicable. Regarding individual bond portfolios or SMAs, another factor to consider is that to take advantage of losses in these accounts, you will incur transaction costs for your clients on both the sale of the current bond and the purchase of the new bond. Though all the above applies to both taxable and tax- exempt bonds, in terms of the latter, there is often the additional consideration of alternative minimum taxes (AMT). With an individual bond portfolio or SMA, the portfolio can be tailored to bonds that are exempt from AMT or specific to issues from your client's home state. While this is true, it is important to acknowledge that there are currently a number of state-specific vehicles available for your clients—particularly in states with high tax rates. Also, though it's sometimes forgotten, the key point that advisors should be concerned with is seeking to maximize client after-tax returns, rather than with minimizing taxes. Bonds issued outside a client's home state and bonds subject to AMT often carry higher yields to maturity. As a result, your clients may well get higher after- tax returns from a portfolio including such bonds. In addition, clients gain from increased diversification—an important benefit. With the preceding considerations in mind, it may be impractical to transition clients from their existing SMA solutions or portfolios of individual bonds into a primarily fund-aligned strategy. For advisors that already utilize an SMA or construct their own bond sleeves, a bond fund can serve as a strong complement—by providing some additional liquidity to the portfolio and a solution for reinvesting periodic cash flows from their individual bond holdings (or SMAs) to reduce potential cash drag. Conclusion For the reasons described in this paper, the vast majority of advisors who invest for their clients are best served through low-cost bond funds. Only those advised clients with the resources to achieve scale comparable to that of a mutual fund should consider putting certain control features ahead of the benefits that a pooled investment vehicle offers. Funds generally provide better diversification, greater return opportunities, lower transaction costs, and higher liquidity for your clients. For advisors, the time savings from outsourcing the day-to-day portfolio management can be reinvested in higher returning opportunities, such as deepening client relationships and growing your practice. Although bonds that are held directly can provide certain advantages over bond mutual funds—primarily related to control over security-specific decisions—such control comes at a cost. To construct an individual bond portfolio, an advisor must assign a very high value to the control benefits to justify the higher costs and additional risks involved. 6 7 References Bennyhoff, Donald, Scott Donaldson, Jamese Dunlap, and Daren Roberts, 2017. A topic of current interest: Bonds or bond funds? Valley Forge, Pa.: The Vanguard Group. Bennyhoff, Donald G., 2009. Municipal bond funds and individual bonds. Valley Forge, Pa.: The Vanguard Group. Donaldson, Scott J., 2009. Taxable bond investing: bond funds or individual bonds? Valley Forge, Pa.: The Vanguard Group. Li, David, Charlotte L. Needham, and Jake Han, 2022. 2021 Transition and Default Studies. FitchRatings. Wu, Simon Z., and Nicholas J. Ostroy, 2021. Transaction Costs During the COVID-19 Crisis: A Comparison between Municipal Securities and Corporate Bond Markets. Washington, D.C., Municipal Securities Rulemaking Board. Connect with Vanguard® advisors.vanguard.com • 800-997-2798 All investing is subject to risk, including the possible loss of the money you invest. Be aware that fluctuations in the financial markets and other factors may cause declines in the value of your account. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. Bond funds are subject to the risk that an issuer will fail to make payments on time and that bond prices will decline because of rising interest rates or negative perceptions of an issuer's ability to make payments. Investments in bonds are subject to interest rate, credit, and inflation risk. Although the income from municipal bonds held by a fund is exempt from federal tax, you may owe taxes on any capital gains realized through the fund's trading or through your own redemption of shares. For some investors, a portion of the fund's income may be subject to state and local taxes, as well as to the federal Alternative Minimum Tax. Diversification does not ensure a profit or protect against a loss. CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. We recommend that you consult a tax or financial advisor about your individual situation. Vanguard is investor-owned, meaning the fund shareholders own the funds, which in turn own Vanguard. © 2022 The Vanguard Group, Inc. All rights reserved. U.S. Patent No. 6,879,964. FAIBVBF 112022

Today I welcome Kim GC Moody, one of our country's top tax experts, to discuss AMT (Alternative Minimum Tax) changes for 2024 & beyond and the potential implications for high income earners in Canada.The podcast has 3 segments:1) AMT history & mechanics2) AMT changes3) AMT ScenariosDiscussion Points:AMT basics (0:47)Table of contents (2:07)Kim Moody's bio (2:41)Intro (3:58)AMT intro, history, & mechanics (6:33)How are tax decisions made in Canada? (12:12)How has AMT changed in 2024? (15:45)Are more people leaving Canada due to excess tax? (20:00)AMT - there is a provincial part, no impact on corporations (24:32)Impact of AMT on capital gains (25:20)Impact of AMT on carrying forward capital losses (27:08)No impact on eligible dividends (27:55)Impact of AMT on lifetime capital gains exemption (28:35)Impact of AMT on charitable gifting (30:05)Impact of AMT on stock options (36:12)Impact of AMT on trusts (37:14)Impact of AMT on carrying forward interest charges for rental properties (38:00)AMT calculations for specific scenarios (39:34)capital gainscapital gains + carry forward capital losscapital gains, eligible dividends, + charitable donationWhat % of people will be impacted by AMT? (47:42)Closing remarks (50:15)Kim Moody:website: https://moodysprivateclient.com/LinkedIn: https://www.linkedin.com/in/kimgcmoody/email: kgcm@kimgcmoody.comKim's podcast: https://kimgcmoody.podbean.com/Yatin Chadha:beyondmdpodcast@gmail.comhttps://www.linkedin.com/in/yatin-chadha-29074b109/

In our last episode, we started our discussion on Incentive Stock Options (ISOs). Now, we'll continue that discussion and dive deeper into Alternative Minimum Tax (ATM). Steve Moyer, vice president of executive compensation & corporate offerings, joins our host, Valerie Escobar, senior wealth advisor, to share more about the tax implications and strategies for ISOs and executive compensation.

For many of Thimbleberry Financial's clients in the  startup and tech communities, Incentive Stock Options, or ISO's, are a hot topic.  Today, Amy Walls and Jag break them down.Simply put, an ISO is a type of employee stock option that comes with tax advantages.  No income tax is due when options are granted or exercised. Also, profits from the sale of ISO's can be taxed under more favorable long-term capital gains rates, provided certain conditions are met.In addition to those restrictions around time of holding, Amy also explains the Alternative Minimum Tax, or AMT.  When do you pay AMT, and what AMT implications should you consider when exercising ISO's?We also walk through vesting, expiration, and post termination.Being proactive and creating a plan is key in this realm; there are certain decisions and actions that cannot be undone.  Amy explains the $100k rule and the Rule of 65, and she cautions against being overweighted in company stock, particularly in the context of market volatility.For more information contact Amy Walls and her staff at 503-610-6510 or click here Thimbleberry Financial.

Mike Resnick of Eversheds Sutherland discusses the effects on taxpayers of the corporate alternative minimum tax and its recently released guidance. For additional coverage, read these articles in Tax Notes:Proposed Regs for Corporate AMT Will Address Partnership SharesCorporate AMT Consolidation Rules Flow From Tax PrinciplesFinancial Firm Highlights Potential for Corporate AMT DistortionTreasury Official Explains Confusing Rule in Corporate AMT NoticeCorporate AMT Depreciation Tweaks Unsurprising but WelcomeGuidance Fills In Some Blanks on Corporate AMTFollow us on Twitter:David Stewart: @TaxStewTax Notes: @TaxNotes**This episode is sponsored by the University of California Irvine School of Law Graduate Tax Program. For more information, visit law.uci.edu/gradtax.This episode is sponsored by the Tax Attorney Recruiting Event. For more information, visit the-tare.com.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner: Jordan ParrishAudio Engineers: Jordan Parrish, Peyton RhodesGuest Relations: Alexis Hart

On the program today is Fidelity's Vice President of Tax Research Peter Bowen and host Kelly Roberts, Vice President of National Accounts for a deep dive into how the Alternative Minimum Tax works and the changes you can expect. Earlier this year, the Federal 2023 budget announced significant changes to the Alternative Minimum Tax system. The changes apply to certain areas like inclusion rate on capital gains, and stock options. So how will this affect investors? And what should advisors keep in mind when informing their clients of these changes? Peter says changes to the Alternative Minimum Tax or AMT doesn't come into effect until next year. Some key highlights - the tax rate on newly calculated tax base (for AMT) is going up from 15% to 20.5%. This is federal rate, provincial rates are layered on top. Peter says the good news is the exemption is increasing from $40 000 to $173 000 – this is the deductible amount before calculating tax burden based on increased rate. He adds 80% of capital gains is included in calculation, next year will be 100%. In terms of advisor planning for the changes to the AMT, Peter says is less of providing tax advice but helping clients be aware of changes and suggesting the right strategies. Changes don't come into effect until next year, so if your client is looking to sell something with significant capital gains, could be done before year end. And they are planning on using capital loss this year, maybe delay that as in future years will only be able to use 50% of that. Recorded on September 14, 2023. At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information. For the second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics' Advisor Digital Experience Study.

In our firm's latest podcast, Kenneth Keung and Kim G C Moody briefly discuss the 2023 Federal Budget proposals to amend the alternative minimum tax regime under Canadian tax law. Specifically, Kenneth and Kim discuss: The history of the AMT; The architecture of the AMT; The 2021 Liberal Party election policy platform promise to introduce a “15% minimum tax; The 2022 Federal Budget update on election policy promise; The 2023 Federal Budget proposals; The release of the draft legislation for the AMT amendments on August 4, 2023; The impact of the AMT proposals on charitable giving, capitals gains and trusts; and What should Canadian taxpayers and their advisors do about these proposals? Happy listening!

Dr. Friday 0:00 Good day. I'm Dr. Friday, President of Dr. Friday's Tax and Financial firm. To get more info go to www.drfriday.com. This is a one-minute moment. Dr. Friday 0:12 The AMT alternative minimum tax exemption for 2022 is $75,900. It begins to phase out. If you are a married couple filing jointly, the exemption is $118,000 and $100,000. And you have the ability to hit exemptions on this, remember. This is a tax code within the tax code. So if you are making 75,900 as a single person or 118,100 as a married couple, you could also be paying AMT tax above standard taxes questions call me at 615-367-0819. Dr. Friday 0:52 You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

What will you actually need to spend in retirement? Joe and Big Al explain how to really think about and calculate your retirement expenses. Plus, if you want to reduce your tax-deferred account balances, does it make more sense to do Roth conversions or reinvest? What about doing Roth conversions to a higher tax bracket than the one you'll be in during retirement? Also, the fellas explain the alternative minimum tax, how Social Security spousal benefits work, and when in the year you turn 72 you must take required minimum distributions from your retirement accounts. And finally, what should someone with no credit history who hasn't paid taxes do with a sudden $100,000 windfall? Show notes, free financial resources, transcript, Ask Joe & Big Al On Air: https://bizlink.to/ymyw-406

Dr. Friday 0:00 Good day. I'm Dr. Friday, President of Dr. Friday's Tax and Financial firm. To get more info go to www.drfriday.com. This is a one-minute moment. Dr. Friday 0:12 This I like to think of is more of the hidden tax: the alternative minimum tax or AMT tax. A lot of people don't really know about it until they actually have to pay for it. The tax cut and Jobs Act of 2017 increased the AMT exemption amounts, which really hadn't changed in like 20 years. Now, it will actually go with inflation. But remember, AMT can kick into higher income interest income from private bonds, large capital gains, and exercising incentive stock options. That's a huge one when your company gives you stock and you may have to pay AMT which is higher than capital gains rates. Announcer 0:51 You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm on 99.7 WTN.

The next installment on new IRA and CHIPS legislation covers accounting for the new corporate alternative minimum tax.

Being sick for a week can be just as costly as the measures you take to avoid getting sick in the first place. The Inflation Reduction Act of 2022 (originally titled Build Back Better) passed after a few last-minute changes to include a lot of politics alongside the deficit reduction. Many of you are probably wondering how the Inflation Reduction Act (IRA) will save the economy and affect business clients around Silicon Valley. Jack Russo asks CPA, Steve Rabin to break down critical points both in and outside the new IRA legislation.

Reuven Avi-Yonah of the University of Michigan Law School discusses the new corporate alternative minimum tax and how it intersects with international taxation. For additional coverage, read these articles in Tax Notes:Inflation Reduction Act Raises Pillar 2 Hopes and ConcernsHard Part Begins for IRS and Treasury as Biden Signs Reconciliation BillCritics Recall BURP in Debate Over Corporate Minimum TaxWe want to hear from you, our listeners! To fill out a short, two-minute survey, visit taxnotes.co/podcastsurvey.Follow us on Twitter:David Stewart: @TaxStewTax Notes: @TaxNotes**This episode is sponsored by Avalara. For more information, visit avalara.com/taxnotes.This episode is sponsored by SafeSend. For more information, visit safesend.com.***CreditsHost: David D. StewartExecutive Producers: Jasper B. Smith, Paige JonesShowrunner and Audio Engineer: Jordan ParrishGuest Relations: Alexis Hart

Need to know about AMT preference items, add backs, and exclusions? And how do AMT credits work?In this episode, Trishul convinces Aaron to wade deep into AMT. They discuss Alternative Minimum Tax preference items, exemptions, adjustments, and exclusions. Aaron provides an example of how the AMT exemption matters when exercising ISOs and why you may not get all of your AMT credit back in future years. Without a doubt, AMT is a complex beast. But with luck, this episode will turn a few unknown unknowns into known unknowns.Episode ReferencesGraystone Advisor: Exercise your ISOs in JanuaryAMT adjustmentsHow to calculate AMTWho benefited from TCJA?AMT income treshhold and exemption amountsThe Balance: What is AMT?Private Activity BondPodcast DescriptionWelcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Welcome back to Powering Your Retirement Radio. I am Dan Leonard your host. In the last episode on Top 10 Tax Facts, you should know, I got a fair amount of downloads and got more comments than normal. In this episode, I thought I address how to read your tax return. As a financial advisor, I get asked, Why do you need to see my tax return? When I ask for documents. As a tax preparer, I get a different question, did I give you everything? The answer to this is how should I know? Did you fill out the tax organizer completely? Which is usually followed up with I have to? Yes, if you want me to know for sure. Before you turn in your documents to your tax preparer, pull out your prior year's return. It will tell you if you have forgotten anything. I need to make a confession, prior to becoming an Enrolled Agent and starting to prepare returns for clients, I was a horrible tax client. I didn't fill out organizers, I never was sure I had all my documents. So, this episode reminds me of how I have learned to organize tax documents. I want to walk you through your 1040 form which will tell you what documents you should have.  If you want extra credit print out Form 1040 and take some notes. How to read a tax return On the top half of page one, you have the following Filing Status Address Crypto Question - This is important. Standard Deduction Dependants  All are straightforward. As Preparer, I need to know about your relationship status, where you reside, if you own any cryptocurrency, if there are any issues with your deductions, and if you have dependents. As a financial advisor, I know how many people I am planning for, that you are potentially an aggressive investor if you have a mortgage if you have kids, or dependents to include in the planning. Either way, I know a fair bit without even seeing a form. The income numbers Let's look at the bottom half of page 1.  Line 1 - W-2 go here - You have a job and you are an employee Line 2 - 1099-Int or a Consolidated 1099 - You have savings that are earning interest = Sch B Line 3 - 1099-Div or a Consolidated 1099 - You own investments that pay dividends = Sch B Line 4 - 1099-R - You rolled over a retirement account or you took a distribution from a retirement account or it goes on Line 5 Line 5 - 1099-R - You collect on a pension or an Annuity Line 6 - SSA-1099 - You are collecting Social Security Line 7 - You sold an investment or a property. The Capital Gain is reported on a 1099-B or 1099-S or a Consolidated 1099 Line 8 - This is other income. See Part I of Schedule 1 - State Refunds (1099-G), Jury Duty, Alimony, Unemployment, and since the Olympics are going on your Olympic, ParaOlympic Medals, and USOC prize money, too. Line 9 - Phew - it is just math Deductions Line 10 - Now Adjustments to income - Part II of Schedule 1 - Educator Expense, Self Employed Health Care Expense, Self Employment Tax, Student Loan Interest, IRA Deductions, and of course the nontaxable amounts of your Olympic, ParaOlympic Medals, and USOC prize money. Line 11 - More Math Line 12a - Schedule A Deductions or Standard Deduction Line 12b - If you claim a Standard Deduction you can claim up to $300 in Charitable Deductions Line 12c - Math Line 13 - Qualified Business Deductions (QBI) for Business Owners Line 14 - Math, again. Taxable Income Line 15 - Math and this is your Taxable Income On to page 2 Line 16 - Tax Calculation, the painful math Adjustments Line 17 - Come from Part I of Schedule 2. Alternative Minimum Tax and Excess Advance Premium Tax Credit Line 18 - Math Line 19 - Nonrefundable Child Tax Credit Line 20 - Schedule 3 - Credits and Payments. Dependent Care Credits, Residential Energy Credits, Adoption credits, etc. Line 21 and Line 22 - More Math Line 23 - More Taxes, like additional taxes on HSA distributions, accumulated distributions from Trust, Golden Parachute payments. (Not as common for many) Line 24 - More Painful Math - Your Total Tax Taxes you have paid already Line 25a - W-2 Withholdings Line 25b - 1099 Withholdings Line 25c - Any other form showing withholdings Line 25d - Totals Line 26 - Total of your Estimated Tax Payments  Line 27a - Earned Income Tax Credit Line 27b - Noncombat Taxable Pay Election Line 27c - 2019 Income which may qualify and expand credit due to Coronavirus Line 28 - Refundable portion of Child Tax Credit or Additional Child Tax Credit Line 29 - Form 8863 - American Opportunity Tax Credit Line 30 - Recovery Rebate Credits (Stimulus Checks) Line 31 - Part II of Schedule 3 - Extension Payments, Excess Social Security, Health Care Tax Credits Line 32 - Math Line 33 - Math - Your Total Payments Refund or Tax Due Line 34 - The happy line, which is the amount of your refund if you are getting one Line 35 - What do you want to be refunded Line 36 - What do you want to pay toward next years taxes Line 37 - The unhappy line, What you owe. Line 38 - The insult line, any penalties for underpayment At the bottom of page 2 3rd Party Designee, who you'll allow to talk to the IRS on your behalf. Signatures, sign your return Paid Preparer, if you paid someone to make sure their information is there, otherwise don't pay them. So as a preparer, if I have your return from last year, I can tell what you had on your return based on what lines are filled in. Without the schedules, I may not know everything, but I know where I need to ask more questions. Recap As a Financial Planner, with Lines 1 to 8, I have a pretty good idea if you have investment assets or are drawing income from retirement accounts. If all you have is a 401k I can see that from your W-2. Line 12 gives me a hint if you own or rent your home. Line 13 tells me if you have a business, even if it is a side hustle. Page 2 of Form 1040, lets me know about the credits you collect, and where your withholdings are coming from. Finally, if you are retired and you owe, I know I can help by increasing your withholdings or lowering them if you get a big refund. So, if I am doing your return do I need you to fill out the organizer? If I am trying to build a financial plan do I need you to answer a bunch of questions? In both cases, probably not, but it does make sense for you to give the professionals you are paying to help you as much information as possible. Reality All preparers and planners know most people are stressed about taxes and planning, having a copy of your return makes our job a little easier and allows us to ask intelligent questions. That is it for this episode, and know you know why planners and preparers what to see your return. In true Jerry McGuire fashion, it helps me help you! Until next time, look for your tax documents, find your 2020 return,  be well and stay safe! Visit my podcast website for more information: https://poweringyourretirementradio.com/how-to-read-your-tax-return

“Democratic proposals generally involve making the tax code even more complicated, with the Alternative Minimum Tax applying to increasing numbers of taxpayers, and increasing the demand for tax-planning.” ~ Clifford F. Thies

ISOs, NSOs, RSUs, and ESPPs all together.In this episode, Trishul and Aaron discuss alternative forms of employee equity compensation. In addition to ISOs, there are NSOs, RSUs, and ESPPs, and each one comes with different tax implications. Your employer can grant access you any combination of these plans. So then, how do you decide when to exercise and when to sell? You can choose to hold on to everything for the upside. Or you can sell everything as soon as possible to lock in your benefits. But most people end up somewhere in the middle, and that's where things get complicated.Episode ReferencesMMS #99. ISO University: Congrats, you're hired! Now follow these steps with your new ISOs.MMS #100. ISO University: Your guide to navigating ISOs in a pre-IPO company.MMS #101. ISO University: It's IPO Time! So now what do you do with your ISOs?Graystone Advisor - When do I Exercise my Incentive Stock Options?Graystone Advisor - You Should Probably Exercise Your ISOs in DecemberGraystone Advisor - You Should Probably Exercise Your ISOs in JanuaryGraystone Advisor - How Do RSUs Work?XYPN: RSUsESOP and ESPPmyStockOptions.com: Holding Requirements for ISOsPodcast DescriptionWelcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

ISOs in late stage private companies and after going public.In this episode, Aaron and Trishul discuss what you can do with your ISOs to prepare for an upcoming liquidity event. At this point, investment risks are still high, so what's the best way to capitalize from here? First, you must consider the timing of exercise. Next, you need to evaluate if you will cash out or hold on for more upside. For most people, it is some combination of cashing out as soon as possible, exercising and selling in the most tax-efficient manner, and holding on to your options or shares for long-term gains.Episode ReferencesMMS #99. ISO University: Congrats, you're hired! Now follow these steps with your new ISOs.MMS #100. ISO University: Your guide to navigating ISOs in a pre-IPO company.Graystone Advisor - When do I Exercise my Incentive Stock Options?Graystone Advisor - You Should Probably Exercise Your ISOs in DecemberGraystone Advisor - You Should Probably Exercise Your ISOs in JanuaryStock Compensation and TaxesISO vs NSO and 83b Election83b ElectionISO Disqualifying DispositionAMT PreferencesIRS: Underpayment PenaltyDrag Along RightsTag Along RightIRS: AMTAMT CreditPodcast DescriptionWelcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

ISOs in the mid stage of a private company.In this episode, Trishul and Aaron discuss what you should look for when you've been at a private company for a few years. At this point, your ISOs may have climbed in value, so it's quite the balancing act. Not only do you need to factor in future investment risks, but also you need to analyze the impact of AMT. Furthermore, waiting to exercise can create a golden handcuffs scenario, which you want to avoid. Thus, it makes sense to exercise some ISOs each year. But don't exercise too many, or you'll end up with unintended consequences. Episode ReferencesMMS #99. ISO University: Congrats, you're hired! Now follow these steps with your new ISOs.MMS #33. If you have Incentive Stock Options, you need to listen to this episode.MMS #21. Why the VIX is useless.Graystone Advisor - When do I Exercise my Incentive Stock Options?Graystone Advisor - You Should Probably Exercise Your ISOs in DecemberISO vs NSO for 83b Elections$100k ISO Limitation83b ElectionISO Disqualifying DispositionMyStockOptions.comSlack IPOAMT Preference ItemsIRS Underpayment PenaltyPodcast DescriptionWelcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

What should you look for when you first receive an ISO grant?In this episode, Aaron and Trishul discuss what you should look for when you begin working for a pre-IPO company and receive a grant of Incentive Stock Options. AMT isn't a concern just yet, but your investment risk is significant. Between QSBS and 83b elections, there are a few critical actions you can take right away. But most of the time, a "wait-and-see" approach will work just as well.Episode ReferencesMMS #33. If you have Incentive Stock Options, you need to listen to this episode.MMS #21. Why the VIX is useless.Graystone Advisor - When do I Exercise my Incentive Stock Options?XYPN: Your Guide to Stock CompensationTaxes: ISO $100k limits, 83b Election, Rule 3921, AMT TaxISO vs NSO for 83b ElectionsISOs and 83b Election$100k ISO Limitation83b ElectionPodcast DescriptionWelcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

Corporate tax is imposed in the United States at the federal, most state, and some local levels on the income of entities treated for tax purposes as corporations. Since January 1, 2018, the nominal federal corporate tax rate in the United States of America is a flat 21% due to the passage of the Tax Cuts and Jobs Act of 2017. State and local taxes and rules vary by jurisdiction, though many are based on federal concepts and definitions. Taxable income may differ from book income both as to timing of income and tax deductions and as to what is taxable. The corporate Alternative Minimum Tax was also eliminated by the 2017 reform, but some states have alternative taxes. Like individuals, corporations must file tax returns every year. They must make quarterly estimated tax payments. Groups of corporations controlled by the same owners may file a consolidated return. Some corporate transactions are not taxable. These include most formations and some types of mergers, acquisitions, and liquidations. Shareholders of a corporation are taxed on dividends distributed by the corporation. Corporations may be subject to foreign income taxes and may be granted a foreign tax credit for such taxes. Shareholders of most corporations are not taxed directly on corporate income but must pay tax on dividends paid by the corporation. However, shareholders of S corporations and mutual funds are taxed currently on corporate income, and do not pay tax on dividends. In 2021 President Biden proposed that Congress raise the corporate rate from 21% to 28%. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

Dr. Friday 0:00 Good day. I'm Dr. Friday, president of Dr. Friday Tax and Financial Firm. To get more info go to DrFriday.com. This is a one-minute moment. Dr. Friday 0:12 This I like to think of is more of the hidden tax, the alternative minimum tax, or AMT tax. A lot of people don't really know about it until they actually have to pay it. The tax cut and jobs act of 2017 increased the AMT exemption amounts, which really hadn't changed in like 20 years. Now it will actually go with inflation. But remember, AMT can kick into higher income, interest income from private bonds, large capital gains, and exercising incentive stock options. That's a huge one when your company gives you stock and you may have to pay AMT which is higher than capital gains rates. Announcer 0:51 You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 pm to 3 pm right here on 99.7 WTN.

Credits. Credits are allowed against AMT for foreign taxes and certain specified business credits. The AMT foreign tax credit limitation is redetermined based on AMTI rather than regular taxable income. Thus, all adjustments and tax preference items above must be applied in computing the AMT foreign tax credit limitation. AMT credit against regular tax. After a taxpayer has paid AMT, a credit is allowed against regular tax in future years for the amount of AMT. The credit for individuals is generally limited to the amount of AMT generated by deferral items (for example, exercise of incentive stock options), as opposed to exclusion items (for example, state and local taxes). This credit is limited so that regular tax is not reduced below AMT for the year. Taxpayers may use a simplified method under which the AMT foreign tax credit limit is computed proportionately to the regular tax foreign tax credit limit. IRS Form 8801 is used to claim this credit. Complexity. The AMT is a tax of roughly 28% on adjusted gross income over $186,300 plus 26% of amounts less than $186,300 minus an exemption depending on filing status after adding back in most deductions. However, taxpayers must also perform all of the paperwork for a regular tax return and then all of the paperwork for Form 6251. Furthermore, affected taxpayers may have to calculate AMT versions of all carryforwards since the AMT carryforwards may be different from regular tax carryforwards. Once a taxpayer qualifies for AMT, he or she may have to calculate AMT versions of carryforward losses and AMT carryforward credits until they are used up in future years. The definitions of taxable income, deductible expenses, and exemptions differ on Form 6251 from those on Form 1040. The complexity of the AMT paired with the history of last-minute annual patches adjusting the law create tax liability uncertainty for taxpayers. For the last ten years, Congress has passed one-year patches to mitigate negative effects, but they are typically passed close to the end of the year. This makes it difficult for taxpayers to determine their tax liability ahead of time. In addition, because the AMT was not indexed for inflation until 2013, the cost of annual patches rises every year. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

The alternative minimum tax (AMT) is a tax imposed by the United States federal government in addition to the regular income tax for certain individuals, estates, and trusts. As of tax year 2018, the AMT raises about $5.2 billion, or 0.4% of all federal income tax revenue, affecting 0.1% of taxpayers, mostly in the upper income ranges. An alternative minimum taxable income (AMTI) is calculated, by taking the ordinary income and adding disallowed items and credits such as state and local tax deductions, interest on private-activity municipal bonds, the bargain element of incentive stock options, foreign tax credits, and home equity loan interest deductions. This broadens the base of taxable items. Many deductions, such as mortgage home loan interest and charitable deductions, are still allowed under AMT. The AMT is then imposed on this AMTI at a rate of 26% or 28%, with a much higher exemption than the regular income tax. The Tax Cuts and Jobs Act of 2017 (TCJA) reduced the fraction of taxpayers who owed the AMT from 3% in 2017 to 0.1% in 2018, including from 27% to 0.4% of those earning $200,000 to $500,000, from 61.9% to 2% of those earning $500,000 and $1,000,000. The major reasons for the reduction of AMT taxpayers after TCJA include the capping of the state and local tax deduction (SALT) by the TCJA at $10,000, and a large increase in the exemption amount and phaseout threshold. A married couple earning $200,000 now requires over $50,000 of AMT adjustments to begin paying the AMT. The AMT previously applied in 2017 and earlier to many taxpayers earning from $200,000 to $500,000 because state and local taxes were fully deductible under the regular tax code but not at all under AMT. Despite the cap of the SALT deduction, the vast majority of AMT taxpayers paid less under the 2018 rules. The AMT was originally designed to tax high-income taxpayers who used the regular tax system to pay little or no tax. Due to inflation and cuts in ordinary tax rates, many middle-income taxpayers began to pay the AMT. The number of households owing AMT rose from 200,000 in 1982 to 5.2 million in 2017, but was reduced back to 200,000 in 2018 by the TCJA. After the expiry of the TCJA in 2025, the number of AMT taxpayers is expected to rise to 7 million in 2026. --- Send in a voice message: https://anchor.fm/law-school/message Support this podcast: https://anchor.fm/law-school/support

We will be discussing the taxes that Germans had to pay in the 1930s and 1940s and how they are similar to the taxes we pay today. ANTI-JEWISH LEGISLATION IN PREWAR GERMANY - https://encyclopedia.ushmm.org/content/en/article/anti-jewish-legislation-in-prewar-germany Fiscal destruction: Confiscatory taxation of Jewish property and income in Nazi Germany - https://voxeu.org/article/confiscatory-taxation-jewish-property-and-income-nazi-germany A List Of 97 Taxes Americans Pay Every Year - https://theeconomiccollapseblog.com/a-list-of-97-taxes-americans-pay-every-year/ Alternative Minimum Tax - https://www.irs.gov/taxtopics/tc556#:~:text=The%20alternative%20minimum%20tax%20%28AMT%29%20applies%20to%20taxpayers,the%20tentative%20minimum%20tax%20over%20the%20regular%20tax.

Please visit my website for the full video transcript: https://tanphan.com/blog Connect with me on LinkedIn: https://www.linkedin.com/in/tanmphan TAN Wealth Management Alternative Minimum Tax (AMT) Credit - how incentive stock options trigger alternative minimum tax and how alternative minimum tax credits are used to offset regular tax liability. Hi everyone. My name is Tan and I am an independent Certified Financial Planner Practitioner at TAN Wealth Management. In today's educational video, I will go over 4 scenarios so you can better understand how incentive stock options trigger alternative minimum tax and how alternative minimum tax credits are used to offset regular tax liability.

Please visit my website for the full video transcript: https://tanphan.com/blog Connect with me on LinkedIn: https://www.linkedin.com/in/tanmphan TAN Wealth Management Overview - Why does alternative minimum tax exist? - What is the alternative minimum tax (AMT)? - How to calculate alternative minimum tax - How to calculate alternative minimum tax income (AMTI) - How to calculate alternative minimum tax (AMT) - What is an alternative minimum tax exemption? - What are the 2021 AMT exemption amounts? - In general, what does “phaseout” mean? - The alternative minimum tax exemption phaseout - Why you should not go over the annual alternative minimum tax income phaseout amount - What are the alternative minimum tax rates for 2021? - What happens when you exercise incentive stock options (ISOs)? - Form 6251 - AMT credit - Using AMT credit - Why do you get taxed on the bargain element if you are subject to AMT? - I am currently not subject to AMT liability. How do I know if I am subjected to AMT liability when I exercise my ISOs? - Understanding the relationship between alternative minimum tax and incentive stock options - Does California have AMT? - AMT and incentive stock options in non-public companies

This episode is also available as a blog post: https://paylesstax.com/2021/04/22/tax-tip-podcast-or-blog-post-and-the-alternative-minimum-tax-credit-for-individuals/ --- Send in a voice message: https://anchor.fm/don-fitch/message

Chief and Matty Weber kickoff the show talking Alternative Minimum Tax policy. John Flannigan calls in to talk student loan debt forgiveness and problems with Tesla. Mike Hart, veteran trader with Tastytrade and contributor to Luckbox Magazine, closes the show talking Bitcoin, ‘trading complacency' and much more. Don't forget, Stocks & Jocks listeners receive a FREE digital subscription at luckboxmagazine.com/jocks. Sign up […]

This episode is also available as a blog post: https://paylesstax.com/2021/03/26/tax-tip-podcast-blog-post-for-real-estate-professionals-alternative-minimum-tax-for-individuals/ --- Send in a voice message: https://anchor.fm/don-fitch/message

In this episode, Aaron and Trishul discuss the factors employees must consider when exercising their stock options. They go into strike price, Fair Market Value at exercise, sales price, and tax implications. They explain the difference between Non-Qualified Stock Options and Incentive Stock Options. They also introduce leverage, the Alternative Minimum Tax, and Golden Handcuffs. In the end, the decision of when to exercise options often lies on a spectrum between a sensible investment decision and a sensible tax decision, with most people falling in the gray area in the middle.Episode ReferencesGraystone Advisor - When do I Exercise my Incentive Stock Options?MMS #21. Why the VIX is useless.Stock Options 101: ISO vs. NQSO vs. Restricted Stock UnitsQualified Small Business Stocks Are More AttractiveIRS Code Section 409AAlways File Your 83bPodcast Description Welcome to The Mind Money Spectrum Podcast where your hosts Aaron Agte and Trishul Patel go beyond traditional finance questions to help you explore how to use your money to achieve the freedom you want in life. Aaron is a Financial Planner from the Bay Area, and Trishul is a Wealth Manager on the East Coast. For more information about Aaron, check out GraystoneAdvisor.com. And for more information on Trishul check out InvestingForever.com. We thank you all for listening, and stay tuned for our latest episode on our website, MindMoneySpectrum.com.

AMT is a separate set of rules and adjustments that must be applied to your tax return once you make a certain amount of income. It is designed to make sure people taking excessive deductions still pay some “minimum” tax. --- This episode is sponsored by · Anchor: The easiest way to make a podcast. https://anchor.fm/app

Under the tax law, certain tax benefits can significantly reduce a taxpayer's regular tax amount. The alternative minimum tax (AMT) applies to taxpayers with high economic income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax. How Is the AMT Calculated? The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax. In general, compute the tentative minimum tax by: Computing taxable income eliminating or reducing certain exclusions and deductions, and taking into account differences with respect to when certain items are taken into account in computing regular taxable income and alternative minimum taxable income (AMTI), Subtracting the AMT exemption amount, Multiplying the amount computed in (2) by the appropriate AMT tax rates, and Subtracting the AMT foreign tax credit. The law sets the AMT exemption amounts and AMT tax rates. Taxpayers can use the special capital gain rates in effect for the regular tax if they're lower than the AMT tax rates that would otherwise apply. In addition, some tax credits that reduce regular tax liability don't reduce AMT tax liability. Am I Subject to the AMT? To find out if you may be subject to the AMT, refer to the Alternative Minimum Tax (AMT) line instructions in the Instructions for Form 1040 and 1040-SR (PDF). If subject to the AMT, you may be required to complete and attach Form 6251, Alternative Minimum Tax – Individuals. See the Instructions for Form 6251. Am I Eligible for a Tax Credit? If you're not liable for AMT this year, but you paid AMT in one or more previous years, you may be eligible to take a special minimum tax credit against your regular tax this year. If eligible, you should complete and attach Form 8801, Credit for Prior Year Minimum Tax - Individuals, Estates, and Trusts (PDF) to claim the minimum tax credit. www.fender-tax.com

#6: I summarize the most important changes to the federal tax brackets and retirement contribution limits to be aware of in 2020.What you’ll learn in this episode:Federal income tax rates for 2020Standard deduction changesAlternative Minimum Tax updatesCapital gains tax rates for 2020Retirement & tax-advantaged account changesRoth IRA Income LimitsIRA Deduction PhaseoutsMisc updates: state & local taxes, mortgage interest deduction, Child Tax Credit, estate tax, foreign earned income exclusion, Section 199ALinks mentioned in this episode:How the final Trump tax bill affects you: analysis and chartsTake a year off with the foreign earned income exclusionTurboTax TaxCasterHYW private Facebook communityIntro/Outro: Old Bossa by Twin Musicom.

Small business owners are famous for taking as many deductions at tax time as the possibly can. When it comes time to get a car loan, mortgage or business loan they are disappointed to find out they are declined. How can entrepreneurs find balance preparing for a loan and making sure they are doing the right thing at tax time. We were joined today by CPA, Charlene Quah , and WenFang Bruchett Licensed in Texas State Board and American Institute of Certified Public Accountants, Charlene Quah, CPA, possessed more than 10 years of professional experience including accounting, business management, tax preparation, tax planning, audit, review, compilation and business consulting. She is currently the principal of XQ CPA PLLC, a firm that goes extra miles to help businesses in increasing profitability, reducing taxes and better manage cash flows. Charlene is also a frequent guest speaker for many business events for small businesses. Charlene had also  completed the American Institute for Certified Tax Coaches' inaugural training program leading to the Certified Tax Coach designation, a program that focuses on court-tested, IRS-approved strategies for minimizing Alternative Minimum Tax, maximizing deductions from real estate and passive activities, maximizing retirement savings, and similarly powerful strategies. WenFang Bruchett is the organization's guiding force and an accomplished banking professional with 25 years of experience. She is a former executive for a global finance organization where she managed over $200 million in assets. She has used that know-how to help transform the lives of thousands of consumers and entrepreneurs from financial rock bottom to financial solvency and wealth - even helping early stage entrepreneurs secure capital. Through their C.A.S.H.Formula (an acronym for Credit, Assets, Savings, Health), Ms. Bruchett and BlissFinance are on a mission to empower individuals and businesses to maximize their hard-earned money and live a wealthier, healthier and happier life. To sign up for the event: https://www.eventbrite.com/e/learn-top-3-tips-to-raise-funds-for-your-business-today-tickets-76061448841?aff=ebdssbdestsearch To find out more : https://www.blissfinance.com/ https://www.xqcpahouston.com/   More about Houston Money Week visit: www.Houstonmoneyweek.org http://www.cheatsheet.com/personal-finance/how-schools-can-improve-their-personal-finance-education.html/ Financial Advisor Magazine Articles: http://www.fa-mag.com/news/advisors-stay-the-course-amid-monday-s-market-drop-22864.html?section=3  http://www.fa-mag.com/news/on-it-s-80th-anniversaryadvisors-consider-social-security-s-impactfuture-22784.html?section=3 You can listen live by going to www.kpft.org and clicking on the HD3 tab. You can also listen to this episode and others by podcast at: http://directory.libsyn.com/shows/view/id/moneymatters or www.moneymatterspodcast.com #KPFTHOUSTON #HoustonMoneyWK #bliss_finance #xqcpa #ChrisHensley #FinancialPlanning #FinancialAdvisor #MoneyMattersPodcast #KPFT #Houston #Texas #UnitedStates 

When President Obama signed the “Affordable Care Act”, aka Obamacare, it came with a pretty significant tax bite called the Net Investment Income Tax (NIIT). From the IRS: “The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.” Now, you may be thinking, “I don't have anywhere near that $250,000 in MAGI to worry about this tax. So, what's the big deal?” See where it says: “Taxpayers should be aware that these threshold amounts are not indexed for inflation”? (Emphasis mine). Not indexed for inflation... Hmmmm..where have we heard that before? Oh yeah, the provisional income rules for the taxation of Social Security benefits as well as the Alternative Minimum Tax. When the legislation to tax Social Security and then the Alternative Minimum Tax were first enacted very few people were affected, thus no outrage, as only “the rich” paid. Now almost everyone pays some tax on their Social Security benefits. (As of the 2017 tax bill fewer taxpayers are caught in the AMT web, thankfully.) Pretty sneaky, eh? Oh, but it gets worse. How is Net Investment Income derived? Again, straight from the IRS website: What are some common types of income that are not Net Investment Income? Wages, unemployment compensation; operating income from a nonpassive business, Social Security Benefits, alimony, tax-exempt interest, self-employment income, Alaska Permanent Fund Dividends (see Rev. Rul. 90-56, 1990-2 CB 102) and distributions from certain Qualified Plans (those described in sections 401(a), 403(a), 403(b), 408, 408A or 457(b)). (emphasis mine) Here the IRS is telling us that distributions from retirement accounts are NOT subject to the NIIT, which is factually correct. What they don't say is that distributions from retirement accounts are counted as income to determine if you need to pay the NIIT on your dividends, interest and capital gains. Some might even call this an error of omission. I certainly do. Let me give you an example of how this works. You are single. You have $180k income. You take a $50k IRA distribution. Your total income now is $230k. That $50k IRA distribution is not subject to NIIT. But if you have capital gains, interest and dividend income, those will be subject to the NIIT because that $50k IRA distribution put you above the $200k threshold! Large distributions from your qualified accounts could add 3.8% to your tax rate on dividends, interest and capital gains. That is nearly a 25% tax increase! Yeah, I get it. This tax won't affect many people so it's not a huge deal. Well, it's not a big deal now but I assure you it will be because of inflation, just like taxes on Social Security. So, what do you do to avoid this??? Take a guess… Distributions from the Roth are not counted in your Adjusted Gross Income and thus will not ensnare you in NIIT trap. Once again, YAY for the ROTH! Is there anything it can't do? --- Support this podcast: https://anchor.fm/josh-scandlen-podcast/support

Professor Richard Gershon reminds us of the impact of the Tax Cuts and Jobs Act for 2018. Charitable contributions and other deductions, exemptions, and tax planning are discussed.Personal exemptions eliminatedStandard Deduction almost doubledChild and Dependent tax credit increasedBeware of Alternative Minimum Tax and Kiddie TaxTax Reform Basics for Individuals and Families https://www.irs.gov/pub/irs-pdf/p5307.pdf See acast.com/privacy for privacy and opt-out information.

Troy Harmon, CFA, CVA, is joined by Managing Associates, Shawna L. Theriault, C.P.A., CFP®, CDFA®, and K.C. Smith, CFP®, to discuss how the Tax Cuts and Jobs Act changed the game for middle income taxpayers who may have been subject to alternative minimum tax in the past. With higher exemptions and phaseouts, far fewer people will pay AMT.

Gary Pinkerton starts off the episode with a rundown of what he sees in the GOP Tax Reform bill from the standpoint of a real estate investor. He goes in to some of the points that are specifically a plus or minus for individual investors. Then Jason talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: Gary Intro: [2:48] The tax reform didn't actually make taxes any less complicated [5:52] Loans over 750k will be impacted, which could impact purchasing Ryan Schellhous Interview: [10:58] The 30,000 foot overview of the GOP Tax Reform [12:53] Will this tax reform create a repatriation of wealth back to the US? [16:43] The move that mobilized the GOP forces toward tax reform [18:40] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [20:50] The standard deducation has been increased, which should increase the number of simple 1040s being filed [23:51] The single largest revenue raiser in the entire bill [26:04] The change in mortgage interest deductions could cause a dampening in the high end real estate market [28:33] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [30:25] Pass-through businesses are getting a 20% deduction Website: www.JasonHartman.com/Masters www.JasonHartman.com/Watch www.IndigoSpire.com

This is the first test show for Here Is The Problem. Topics Include: 1. Talk radio show host/podcaster Dave Smith, host of Part of the Problem, dishes out on Tom Woods, Smith's disagreement with the Libertarian Party, Dave's discussion of the immigration matter a.k.a. "the border wall" and what I think should do about it, and Dave's view and my view on the war between Trump and Steve Bannon. This even includes the discussion of liberal journalist/reporter Michael Wolff's new book Fire and Fury, which is sold out on Amazon.com and Barnes & Noble. The book talks about, according to Wolff, the feud between Bannon and Trump. URL: https://gasdigitalnetwork.com/gdn-rss/?showId=93 2. The #MeToo Movement, how it started, and my thoughts on it, including my views on Harvey Weinstein. and finally, 3. Trump's tax plan: what I like about it and what I don't like about it. What we can do about the Federal Income Tax, the Alternative Minimum Tax, The Corporate Income Tax, and corporate taxes. Plus, I also talk about why I stopped doing The Todd Andrew Barnett Show, and, more importantly, Liberty Cap Talk Live.

Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: [3:36] The 30,000 foot overview of the GOP Tax Reform [5:31] Will this tax reform create a repatriation of wealth back to the US? [9:22] The move that mobilized the GOP forces toward tax reform [11:19] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [13:29] The standard deducation has been increased, which should increase the number of simple 1040s being filed [16:30] The single largest revenue raiser in the entire bill [18:42] The change in mortgage interest deductions could cause a dampening in the high end real estate market [21:12] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [23:03] Pass-through businesses are getting a 20% deduction [30:02] The accelerated bonus depreciation is enormous for real estate investors [33:34] Changes to the 1031 Exchange rule [37:37] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques [39:26] 529 plans (education plans for children) can now be used to pay for private schools [40:00] Some tax changes that were EXPECTED but didn't end up happening Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest www.IndigoSpire.com

Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: [3:10] The 30,000 foot overview of the GOP Tax Reform [5:06] Will this tax reform create a repatriation of wealth back to the US? [8:56] The move that mobilized the GOP forces toward tax reform [10:53] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [13:03] The standard deducation has been increased, which should increase the number of simple 1040s being filed [16:04] The single largest revenue raiser in the entire bill [18:16] The change in mortgage interest deductions could cause a dampening in the high end real estate market [20:46] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [22:38] Pass-through businesses are getting a 20% deduction [29:36] The accelerated bonus depreciation is enormous for real estate investors [33:08] Changes to the 1031 Exchange rule [37:12] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques [39:00] 529 plans (education plans for children) can now be used to pay for private schools [39:34] Some tax changes that were EXPECTED but didn't end up happening Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest www.IndigoSpire.com

Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: [3:28] The 30,000 foot overview of the GOP Tax Reform [5:23] Will this tax reform create a repatriation of wealth back to the US? [9:14] The move that mobilized the GOP forces toward tax reform [11:11] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [13:21] The standard deducation has been increased, which should increase the number of simple 1040s being filed [16:22] The single largest revenue raiser in the entire bill [18:34] The change in mortgage interest deductions could cause a dampening in the high end real estate market [21:04] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [22:55] Pass-through businesses are getting a 20% deduction [29:54] The accelerated bonus depreciation is enormous for real estate investors [33:26] Changes to the 1031 Exchange rule [37:29] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques [39:18] 529 plans (education plans for children) can now be used to pay for private schools [39:52] Some tax changes that were EXPECTED but didn't end up happening Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest www.IndigoSpire.com

Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: [3:36] The 30,000 foot overview of the GOP Tax Reform [5:31] Will this tax reform create a repatriation of wealth back to the US? [9:22] The move that mobilized the GOP forces toward tax reform [11:19] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [13:29] The standard deducation has been increased, which should increase the number of simple 1040s being filed [16:30] The single largest revenue raiser in the entire bill [18:42] The change in mortgage interest deductions could cause a dampening in the high end real estate market [21:12] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [23:03] Pass-through businesses are getting a 20% deduction [30:02] The accelerated bonus depreciation is enormous for real estate investors [33:34] Changes to the 1031 Exchange rule [37:37] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques [39:26] 529 plans (education plans for children) can now be used to pay for private schools [40:00] Some tax changes that were EXPECTED but didn't end up happening Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest www.IndigoSpire.com

Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: [3:32] The 30,000 foot overview of the GOP Tax Reform [5:27] Will this tax reform create a repatriation of wealth back to the US? [9:18] The move that mobilized the GOP forces toward tax reform [11:15] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [13:24] The standard deducation has been increased, which should increase the number of simple 1040s being filed [16:26] The single largest revenue raiser in the entire bill [18:38] The change in mortgage interest deductions could cause a dampening in the high end real estate market [21:08] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [22:59] Pass-through businesses are getting a 20% deduction [29:58] The accelerated bonus depreciation is enormous for real estate investors [33:30] Changes to the 1031 Exchange rule [37:33] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques [39:22] 529 plans (education plans for children) can now be used to pay for private schools [39:56] Some tax changes that were EXPECTED but didn't end up happening Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest www.IndigoSpire.com

Jason Hartman talks with Ryan Schellhous, founder at IndigoSpire CPAs & Advisors, about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: [3:23] The 30,000 foot overview of the GOP Tax Reform [5:18] Will this tax reform create a repatriation of wealth back to the US? [9:09] The move that mobilized the GOP forces toward tax reform [11:06] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [13:16] The standard deducation has been increased, which should increase the number of simple 1040s being filed [16:17] The single largest revenue raiser in the entire bill [18:29] The change in mortgage interest deductions could cause a dampening in the high end real estate market [20:59] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [22:50] Pass-through businesses are getting a 20% deduction [29:49] The accelerated bonus depreciation is enormous for real estate investors [33:21] Changes to the 1031 Exchange rule [37:24] The carried interest rules have changed as well, impacting the hedge fund managers trading techniques [39:13] 529 plans (education plans for children) can now be used to pay for private schools [39:47] Some tax changes that were EXPECTED but didn't end up happening Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest www.IndigoSpire.com

Jason Hartman starts off the show from the bottom of the Grand Canyon discussing the upcoming Meet the Masters event, along with his excitement about the new GOP Tax Reform. Then Jason talks with CPA Ryan about the new tax plan. The two start off with a 30,000 foot overview of the plan, then drill down into specific components of the plan as they figure out who is going to be helped and who may not see as much of a benefit under the plan. Ryan explains the biggest revenue raisers and "losers" under the new bill, and some of the most important pieces that will impact individual filers. Key Takeaways: Jason Intro: [3:04] The Grand Canyon may actually be more impressive when you look up from the bottom [5:39] Meet the Masters of Income Property is in 2.5 weeks, featuring Ron Paul [7:45] Danielle DiMartino-Booth may not be a huge fan of the new tax reform; we'll find out at Meet the Masters CPA Interview: [12:58] The 30,000 foot overview of the GOP Tax Reform [14:53] Will this tax reform create a repatriation of wealth back to the US? [18:43] The move that mobilized the GOP forces toward tax reform [20:40] The 2nd most important thing in the tax plan was the widening of tax brackets and lowering of rates for individuals [22:50] The standard deducation has been increased, which should increase the number of simple 1040s being filed [25:51] The single largest revenue raiser in the entire bill [28:04] The change in mortgage interest deductions could cause a dampening in the high end real estate market [30:33] The Alternative Minimum Tax isn't gone, but it's gone through an overhaul [32:25] Pass-through businesses are getting a 20% deduction Website: www.JasonHartman.com/Masters www.JasonHartman.com/Contest

Joint Finance Co-Chair Rep. John Nygren talks about Wisconsin's 2017-19 state budget, which passed its final vote in the state's budget committee Wednesday night. The budget eliminates the state's Alternative Minimum Tax and Forestry Mill Tax, and doesn't increase the gas tax or general vehicle registration fee. Nygren joins MacIver's Matt Kittle, filling in for Jay Weber on News/Talk 1130 WISN. More Jay Weber at News/Talk 1130 WISN: https://www.iheart.com/podcast/the-jay-weber-show-28167130/

Wisconsin is just one of six states that still has an Alternative Minimum Tax (AMT), which is now impacting middle income families. It's effectively a second income tax in Wisconsin, while other states have no income tax at all. Rep. Kooyenga explains with Matt Kittle filling in for Dan Conry on News/Talk 1310 WIBA. Read the report here: http://bit.ly/2vCJjiG More Dan Conry at News/Talk 1310 WIBA: wiba.iheart.com/media/podcast-dan-conry-danconry/

Yesterday I recorded a new podcast with my US-based tax attorney to talk about the Trump administration's new tax plan... or as I like to call it, the plan to have a plan. Clearly they're trying to do something positive and significant. But to say that their strategy is light on details at just a single page would be a massive understatement. Rather than rehash and recap what has already been covered in the media, my attorney and I dove into some of the more important issues: what's NOT in the plan, what are the major details to sort out, and what's SAFE? Personally, I'm extremely skeptical of major tax reform… though I'd be happy to be proven wrong. As I've written a number of times, the last time the tax code was updated was 1986. Tech-savvy consumers were still using 5 ¼ inch floppy disks. Many of our readers hadn't even been born yet. The 1986 tax code was perfectly reasonable for an industrialized economy dominated by large companies like General Motors. Today, technology makes it possible for companies to generate income across the world through products and services that are entirely digital. Yet today's companies are still forced to use the same hopelessly outdated tax code. It's such an embarrassing anachronism, it would be like the US government using those 1980s era 5 ¼ inch floppy disks to run its nuclear program. Oh wait… The reason I'm skeptical, though, is that each and every line item in the tax code has a certain group of beneficiaries that's willing to fight tooth and nail to keep it. There are people who benefit from all the deductions that the administration wants to eliminate. There are even people who will fight to keep the widely-hated Alternative Minimum Tax and Estate Tax. And the larger problem, of course, is that millions of taxpayers and businesses have made plans and structured their affairs in a way to conform to the current tax code. Pulling the tablecloth out from underneath them and suddenly changing the rules could end up causing some serious blowback. So it's enormously difficult to please a firm majority. And even if they manage to pull this off, they'll still be accused of not being ‘revenue neutral.' This is the part I find to be completely absurd. The tax code is going to affect hundreds of millions of people and businesses in the largest, most complex economy in the world. Economist cannot possibly predict with any accuracy how a radical overhaul of the tax code is going to impact the US government's tax revenue ten years from now. Nevertheless, this is going to be one of the primary arguments against the plan. One of the points my attorney and I discussed is what will remain safe, i.e. what they're NOT going to touch. Retirement accounts are CLEARLY in that category. If you have an IRA or 401(k), that's not going to be touched. It would be politically disastrous for everyone. This means that establishing a robust retirement structure like a self-directed SEP IRA, or a solo(k), is still a fantastic option, regardless of what they do with the rest of the code. With a self-directed SEP IRA, for example, you create a new retirement plan with a contribution limit that increases from $5,500 to as much as $54,000 per year. That's almost 10-fold. Plus the contributions are tax-deductible, meaning you can aggressively (and LEGALLY) reduce the amount of income tax that you owe. Meanwhile, the idea of a self-directed IRA structure is that your retirement plan owns precisely ONE asset: an LLC. (You'll need to find an IRA custodian that accepts self-directed structures, like IRA Services.) You (or your spouse, parent, financial advisor, etc.) become the MANAGER of the LLC, which essentially gives you far greater discretion in how your retirement funds are invested. Rather than be stuck in an overpriced stock market, for example, your self-directed IRA plan can own income-producing real estate, farmland,

Yesterday I recorded a new podcast with my US-based tax attorney to talk about the Trump administration's new tax plan... or as I like to call it, the plan to have a plan. Clearly they're trying to do something positive and significant. But to say that their strategy is light on details at just a single page would be a massive understatement. Rather than rehash and recap what has already been covered in the media, my attorney and I dove into some of the more important issues: what's NOT in the plan, what are the major details to sort out, and what's SAFE? Personally, I'm extremely skeptical of major tax reform… though I'd be happy to be proven wrong. As I've written a number of times, the last time the tax code was updated was 1986. Tech-savvy consumers were still using 5 ¼ inch floppy disks. Many of our readers hadn't even been born yet. The 1986 tax code was perfectly reasonable for an industrialized economy dominated by large companies like General Motors. Today, technology makes it possible for companies to generate income across the world through products and services that are entirely digital. Yet today's companies are still forced to use the same hopelessly outdated tax code. It's such an embarrassing anachronism, it would be like the US government using those 1980s era 5 ¼ inch floppy disks to run its nuclear program. Oh wait… The reason I'm skeptical, though, is that each and every line item in the tax code has a certain group of beneficiaries that's willing to fight tooth and nail to keep it. There are people who benefit from all the deductions that the administration wants to eliminate. There are even people who will fight to keep the widely-hated Alternative Minimum Tax and Estate Tax. And the larger problem, of course, is that millions of taxpayers and businesses have made plans and structured their affairs in a way to conform to the current tax code. Pulling the tablecloth out from underneath them and suddenly changing the rules could end up causing some serious blowback. So it's enormously difficult to please a firm majority. And even if they manage to pull this off, they'll still be accused of not being ‘revenue neutral.' This is the part I find to be completely absurd. The tax code is going to affect hundreds of millions of people and businesses in the largest, most complex economy in the world. Economist cannot possibly predict with any accuracy how a radical overhaul of the tax code is going to impact the US government's tax revenue ten years from now. Nevertheless, this is going to be one of the primary arguments against the plan. One of the points my attorney and I discussed is what will remain safe, i.e. what they're NOT going to touch. Retirement accounts are CLEARLY in that category. If you have an IRA or 401(k), that's not going to be touched. It would be politically disastrous for everyone. This means that establishing a robust retirement structure like a self-directed SEP IRA, or a solo(k), is still a fantastic option, regardless of what they do with the rest of the code. With a self-directed SEP IRA, for example, you create a new retirement plan with a contribution limit that increases from $5,500 to as much as $54,000 per year. That's almost 10-fold. Plus the contributions are tax-deductible, meaning you can aggressively (and LEGALLY) reduce the amount of income tax that you owe. Meanwhile, the idea of a self-directed IRA structure is that your retirement plan owns precisely ONE asset: an LLC. (You'll need to find an IRA custodian that accepts self-directed structures, like IRA Services.) You (or your spouse, parent, financial advisor, etc.) become the MANAGER of the LLC, which essentially gives you far greater discretion in how your retirement funds are invested. Rather than be stuck in an overpriced stock market, for example, your self-directed IRA plan can own income-producing real estate, farmland,

Yesterday I recorded a new podcast with my US-based tax attorney to talk about the Trump administration’s new tax plan... or as I like to call it, the plan to have a plan. Clearly they’re trying to do something positive and significant. But to say that their strategy is light on details at just a single page would be a massive understatement. Rather than rehash and recap what has already been covered in the media, my attorney and I dove into some of the more important issues: what’s NOT in the plan, what are the major details to sort out, and what’s SAFE? Personally, I’m extremely skeptical of major tax reform… though I’d be happy to be proven wrong. As I’ve written a number of times, the last time the tax code was updated was 1986. Tech-savvy consumers were still using 5 ¼ inch floppy disks. Many of our readers hadn’t even been born yet. The 1986 tax code was perfectly reasonable for an industrialized economy dominated by large companies like General Motors. Today, technology makes it possible for companies to generate income across the world through products and services that are entirely digital. Yet today’s companies are still forced to use the same hopelessly outdated tax code. It’s such an embarrassing anachronism, it would be like the US government using those 1980s era 5 ¼ inch floppy disks to run its nuclear program. Oh wait… The reason I’m skeptical, though, is that each and every line item in the tax code has a certain group of beneficiaries that’s willing to fight tooth and nail to keep it. There are people who benefit from all the deductions that the administration wants to eliminate. There are even people who will fight to keep the widely-hated Alternative Minimum Tax and Estate Tax. And the larger problem, of course, is that millions of taxpayers and businesses have made plans and structured their affairs in a way to conform to the current tax code. Pulling the tablecloth out from underneath them and suddenly changing the rules could end up causing some serious blowback. So it’s enormously difficult to please a firm majority. And even if they manage to pull this off, they’ll still be accused of not being ‘revenue neutral.’ This is the part I find to be completely absurd. The tax code is going to affect hundreds of millions of people and businesses in the largest, most complex economy in the world. Economist cannot possibly predict with any accuracy how a radical overhaul of the tax code is going to impact the US government’s tax revenue ten years from now. Nevertheless, this is going to be one of the primary arguments against the plan. One of the points my attorney and I discussed is what will remain safe, i.e. what they’re NOT going to touch. Retirement accounts are CLEARLY in that category. If you have an IRA or 401(k), that’s not going to be touched. It would be politically disastrous for everyone. This means that establishing a robust retirement structure like a self-directed SEP IRA, or a solo(k), is still a fantastic option, regardless of what they do with the rest of the code. With a self-directed SEP IRA, for example, you create a new retirement plan with a contribution limit that increases from $5,500 to as much as $54,000 per year. That’s almost 10-fold. Plus the contributions are tax-deductible, meaning you can aggressively (and LEGALLY) reduce the amount of income tax that you owe. Meanwhile, the idea of a self-directed IRA structure is that your retirement plan owns precisely ONE asset: an LLC. (You’ll need to find an IRA custodian that accepts self-directed structures, like IRA Services.) You (or your spouse, parent, financial advisor, etc.) become the MANAGER of the LLC, which essentially gives you far greater discretion in how your retirement funds are invested. Rather than be stuck in an overpriced stock market, for example, your self-directed IRA plan can own income-producing real estate, farmland,

https://turbotax.intuit.com The Alternative Minimum Tax (AMT) Explained - The Alternative Minimum Tax, or AMT, was introduced in 1969 to ensure that the wealthiest Americans paid taxes, even after using tax breaks and loopholes, but the AMT was never updated to account for inflation. Every year, more of the middle class was caught up in it. Learn how the Alternative Minimum Tax compensates for inflation, how to use IRS tax form 6251 to calculate your AMT using your Adjusted Gross Income After Itemized Deductions, and other helpful information about the AMT and your taxes with this TurboTax tax tip video. For more tips and information that can help you get your taxes done smarter, visit TurboTax.com.

Have you ever wondered about the average cost of tax preparation? We have numbers for you. Listen in and see whether the money you've spent on tax preparation is in the ballpark. We'll also talk about:The Death Master File: the dead don’t talk but they have been know to file taxes Form 1040, W2s and 1099sUsing an IRA for short-term borrowing or to fund your business -- Is it a wise move?The Alternative Minimum Tax?Michael Jordan. Yes, the basketball star.Recorded 12.28.2013

Ed Butowsky, wealth manager, financial advisor, and managing partner of Chapwood Investment Management, joins Fox News to discuss how the current Fiscal Cliff Bill could slow the economy down further and what it means to your wallet.

Spurred by things he observed in his role as a forensic economist in the courtroom, Dr. Kent Gilbreath, professor of Economics at Baylor University's Hankamer School of Business, recently wrote the "The Coming Perfect Economic Storm." In the paper, Dr. Gilbreath identifies major trends in the U.S. economy that are converging on our economic horizon. We'll explore those trends in a series of segments over the coming weeks. This week, he discusses a tax that may surprise several people in the middle class soon: the Alternative Minimum Tax.