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Old 03-25-2007, 05:37 AM
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WaltPA WaltPA is offline
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Default Re: IRS Rules for Tax Credit

Quote:
Originally Posted by worthywads View Post
Mickster is generalizing assuming that everyone that is married and owns a house has enough deductions to hit the AMT. There is nothing in any code that ties the hybrid credit to either marriage or home ownership.
Actually, it is the loss of most deductions which are the "hit" with AMT.

Congress decided long ago to go after the effect (rich paying little-to-no taxes) rather than the cause (subtle tax loopholes being exploited by the rich). That twisted logic is why AMT is such a bad kludge today. With AMT, tax deductions which most don't consider loopholes, like primary home mortgages, kids, marriage, etc, have become major factors in its calculation.

So, with the hybrid credit tax law with its ties with AMT, and AMT with its ties to marriage and home ownership, there is indeed an indirect link.

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