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Taxes / Capital Gain & AMTs?


I am cashing in my stocks at a $300,000,00 gain, in a small c-corporation that I held over 5 years. Our AGI is about $120,000.00.

What is the tax on long capital / dividends gains? Does the AMTs kicks in and void the benefits of our long term investment?

It so confusing, can anybody clarify this situation with some advice.

I am assuming that your an individual not a corporation and that you held ownership in a c corp. So your gain will be taxed at the long term 15%. As far as the ATM goes it depends on how many deductions and exemptions you are claiming. My guess is since you AGI will be about 420,000 that the AMT will not kick in but it really depends on your situation.

Basically if you are using a program to do your taxes it will calculate your liability under AMT and under the normal rate then you will be responsible for the greater amount.

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