BUSINESSWEEK ONLINE : FEBRUARY 1, 1999 ISSUE
PERSONAL BUSINESS

What Triggers the AMT...

-- State and local tax bills

-- Personal exemptions

-- Standard deduction

-- Miscellaneous itemized deductions

-- Interest deduction on second mortgages

-- Deductions for medical expenses

-- Gains on exercised incentive stock options

-- Gains on certain qualified small business stock


...And How to Avoid It

-- Prepay or delay state and local tax bills

-- Shift problematic deductions into other tax years

-- Exercise incentive stock options over two or more years

-- Spread capital gains over two or more years

-- Increase income by exercising nonqualified options, buying income-producing investments, or taking short-term capital gains


DATA: J.P. MORGAN & CO., BUSINESS WEEK

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