Warning on tax credit if AMT affects you.
 

I just found out that the $2300 tax credit I was expecting for my 08 FEH has been trimmed to $200 due to my eligibility for the AMT. What a rip. :angry:

If you are counting on the tax credit for your purchase, make sure you know if your return will feature AMT or not.

Re: Warning on tax credit if AMT affects you.
 

MrCrank,
When I did our taxes last year, I noticed if we didn't have a house mortgage , I don't think I would have received a 1/4 of the credit. I we had to file 2 or
3 pages of extra forms including the AMT I think.. They don't tell you that at the dealer though...
Mike

Re: Warning on tax credit if AMT affects you.
 

I just got back my extra $2200 for my 2008 FEH AWD luckily the AMT didn't affect my return but the dealers should warn perspective buyers of that.

Re: Warning on tax credit if AMT affects you.
 

We just got back our taxes. We did get the $3000.00 back (3600 total) but they specifically told me that it was a good thing I had paid MORE mortgage interest this year, because last year I would not have qualified for the rebate. ALSO, the $3000.00 rebate lowered my $1000.00 deduction for my daughter by about a hundred bucks. I haven't really figured that one out yet...

Another helpful hint was the fact that when we bought the FEH, they recommended using a heloc for the purchase, which would make the interest on the FEH loan both tax deductable and it would go towards the minimum deductions needed to itemize.

I'm not a tax guy, but I think I might have found a pretty good one...


08FEH

Re: Warning on tax credit if AMT affects you.
 

"heloc" = home equity line of credit. (I had to look that one up)

Great idea!

Re: Warning on tax credit if AMT affects you.
 

I would have done that but I paid cash for my car. First time I ever did.

Anyway, the AMT used to be a way for making sure rich people would pay some tax regardless of all the loopholes they could find, but it has extended its reach wayyyyy down now. Congress isn't going to act; the gov't is short of revenues already and don't let anyone tell you that cutting taxes increases government revenues. That's a fantasy.

Re: Warning on tax credit if AMT affects you.
 

Actually, the AMT has simply "stayed the same". Unfortunately, the "effect" is that it is hitting more and more people simply because it has never been adjusted for inflation. There are candidate's aware of this issue and some are proposing steps to correct the error. I'll leave the discovery of which one is wiling to address this alone as I don't like political banter on non-political forums.

Re: Warning on tax credit if AMT affects you.
 

You're right -- the effect is, of course, indirect. Cutting taxes stimulates economic growth; economic growth increases government revenues. That increase may or may not cover the difference between what is collected and what would have been collected.

I'd also agree that the gov't is short of revenues, but that's determined by two factors: revenue and spending levels.

Congress acts on the AMT a year at a time, because a permanent fix changes the projected revenues and the corresponding projected deficit over multiple years.

I appreciate the idea of incenting people to buy fuel-efficient vehicles, but current fuel prices have put us (taxpayers) in the odd position of subsidizing the purchase of vehicles that would be produced at max capacity and sold within days, even without a tax credit.

Re: Warning on tax credit if AMT affects you.
 

Darn that hurts a lot, very unfair to use, but thank you for the heads up good day....
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alternative energy sources

Re: Warning on tax credit if AMT affects you.
 

What is the AMT?