American military thought has coined the expression 'Overall Strategic Objective.' When [British] officers first heard this they laughed; but later on its wisdom became apparent and accepted. Evidently this should be the rule, and other great business be set up in subordinate relationship to it.
The AMT was created in 1969 over outrage that 155 high-income households making over $200,000 at that time didn't end up owing any federal income tax. That $200,000 would be worth $1.3 million today.
If you have one or more of these exposure items, you should first estimate your regular federal income tax liability. Then estimate your AMT liability by filling out IRS Form 6251 (Alternative Minimum TaxâIndividuals). If your AMT bill exceeds your regular tax bill, you will owe the AMT. Why upper-middle-income taxpayers get hit. Under our current tax rules, the AMT is usually a nonfactor for folks with really high incomes (say $750,000 or higher) for two main reasons.