Rental Income And AMT Taxation Issue
Hi all, This has been a great forum. I have been getting a lot of valuable inputs from veteran landlords. Here is a scenario that i forsee. With the way the AMT is computed, my guess is that with the rental income, we will get into the AMT levels for the next year. The heartburn being that the overall gain from the rental after paying mortgage/taxes/overhead is gonna be like less than $1K for the year. How can i structure the rental ( actually our primary home), such that only the positive cash flow will flow thru to us as "real" income. Any easy way to circumvent the AMT tax hit? Will need to have the new tenant sign the rental agreement next week. Thanks Krish

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