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March 30, 2004
AMT: Just When You Think You Have It Figured Out...
I just got back from my accountant's office. Grim, folks. Grim. It seems that just as I'm about to get my head above water, another wave hits. Let me clue you in just a tad. I overextend--I invest in friends, I support a lot of causes, I funded a documentary that's about to be released, I run for office. I don't buy fancy cars, I don't take cruises, I don't buy huge houses and fly in French designers. When I do things, I don't sit back and think about how tax advantageous it would be to not do something, or to do something differently. I'm not opportunisitic in that way. So every year there's something that pops up and wham! This year I was reintroduced to my old nemesis, the Alternative Minimum Tax. So you can see why I'm grouchy. I sold some old stock last year, and besides that, for the most part I earned very little because I deferred payment from Mission Research (ya know, being a team player and all). Anyway, the cap gains tax is 10% for me this year, but the AMT pretty much makes that irrelevant. Which makes me wonder why we have a cap gains tax at all, given I'm going to pay AMT anyway. It's cloudy, it's cold, and AMT just landed on my foot like a steel girder. Not a good day to call, folks. 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