This is the 17th in a series of 23 tax tips tha AdvisorOne is publishing on each business day in March as part of our Tax Planning Special Report (see our Special Report calendar for a more complete list of topics to be covered and experts who will deliver their insights).
The tax tip today comes from Tim Speiss, partner and chairman, Personal Wealth Advisors, at EisnerAmper LLP. Speiss has provided comprehensive tax planning and investment, compensation, and financial planning services to executives, families and business owners for close to 30 years. Speiss holds a BS in business and MS in taxation from Widener University.
The Tip: Minimize AMT
Speiss (left) says EisnerAmper always works with clients around the alternative minimum tax (AMT), as most of them live in high-rate states—primarily in New Jersey, New York and California—and are subject to the add-back of state and local taxes, which are disallowed for the federal AMT calculation. “We work with our clients in a multi-year environment. We’re looking at the timing of their state tax payment in 2010, 2011 and 2012, and we’re trying to understand by punching up or deferring state income tax payments how they can minimize the AMT, and thinking about their income flows as well.”