How the Amt Affect Long-Term Capital Gain Rates

Tax Adviser, p. 544, September 2005

Posted: 5 Jan 2006

See all articles by Charles Carslaw

Charles Carslaw

University of Nevada, Reno

Richard Mason

University of Nevada, Reno

John Mills

University of Nevada, Reno

Abstract

Common wisdom suggests that in planning for the tax bill for a long term capital gain using a flat 15% rate for the estimated federal tax liability is sufficient. The authors examine and illustrate that the interaction between the alternative minimum tax (AMT), the level of ordinary income, and the magnitude of the long term capital gain can often result in effective rates above 15%. The effects of filing status on the effective rates are also examined in the article. Guidance for estimating the true effective federal income tax rate on a long term capital gain is provided.

Note: This is a description of the paper and not the actual abstract.

Suggested Citation

Carslaw, Charles and Mason, Richard and Mills, John, How the Amt Affect Long-Term Capital Gain Rates. Tax Adviser, p. 544, September 2005, Available at SSRN: https://ssrn.com/abstract=873554

Charles Carslaw (Contact Author)

University of Nevada, Reno ( email )

1664 N. Virginia St
Reno, NV 89557
United States

Richard Mason

University of Nevada, Reno ( email )

1664 N. Virginia St
Reno, NV 89557
United States

John Mills

University of Nevada, Reno ( email )

1664 N. Virginia St
Reno, NV 89557
United States

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