taxservices

  The AMT was enacted in 1969 to prevent a small group of wealthy individuals from exploiting tax loopholes to avoid paying any taxes at all. Rather than eliminating the loopholes, Congress devised a scheme to compute a person’s tax in two ways: one using the standard tax system and the other using a unique “alternative” method. The taxpayer pays the highest of the two outcomes. As you may expect, this dual system is complicated and perplexing. The scheme didn’t disturb many people because it only applied to the wealthiest taxpayers. However, because the AMT levels did not keep up with inflation, they began to affect an increasing number of Americans.  Here’s how to figure out whether you’re at risk and what you can do about  AMT Tax planning . AMT Planning  Is Unaffected By A Few Popular Tax Items Some items are deductible on a conventional income tax return but not on an AMT return. Beginning in 2018, the Tax Cuts and Jobs Act repealed the personal exemption. Until...

  Introduction Tax consultants , also referred to as tax counselors, specialize in tax law, planning, and compliance. They help firms and individuals stay updated on new tax legislation and position people for short- and long-term tax savings. The role of a  tax consultant  is usually expanded on that of a tax preparer. While tax advisors prepare tax returns, they also work with clients throughout the year to keep their tax obligations to a minimum. Don’t assume that only the wealthy can afford a tax consultant. Hiring one may cost a few hundred dollars up front, but it might save you thousands of dollars or more in the long run. Difference between an accountant and a  tax advisor ? A  tax consultant  is a professional who has received training in all aspects of tax law. A tax advisor must be either a tax practitioner or the proprietor of a tax consulting firm if you need legal tax advice. He must also hold a certificate of practice at the same time. A...