The Ticking Tax Bomb That Might Be Coming For You

There is a [tag]ticking tax bomb[/tag] that will hit 16 million Americans this year. The problem with this tax is that typical tax planning doesn’t work. It has its own rules. This sneaky tax is called [tag]Alternative Minimum Tax[/tag] ([tag]AMT[/tag]). The problem is that it’s a complicated tax to calculate and even harder to try to explain, so most tax advisors aren’t talking about it. But, here’s a statistic that everyone should be talking about: This year over 16 million taxpayers will be subject to it. And, in just a few more years, 30 million [tag]taxpayers[/tag] will be, unless Congress does something to combat it. QuickBooks Premier 2006

One of the huge benefits of owning [tag]real estate investment property[/tag] is the paper loss you can legitimately generate as you can continue to put money in your pocket from the investments. In other words, you’ve got cash flow and yet still have a legal tax loss. Stay tuned to this column for more information on how that is possible or visit my website at taxloopholes.com for free tax strategies you can use right now. The tax breaks are there for [tag]real estate investors[/tag], but are limited as your income goes higher. But, that’s where being a real estate professional comes into play. As a real estate agent, you qualify as a real estate professional in the IRS’s eyes and that means you can take an unlimited amount of loss against your income, no matter how much the income is.

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