By making early calculations, taxpayers may be able to determine the impact of additional charitable gifts on the AMT. Accelerating pledge commitments or making larger than ordinary gifts within the allowable 50% and 30% AGI limitations should be considered.

What would trigger an AMT?

Long-term gains (e.g., profits from selling a home or other investments) are taxed at the same rate under both systems, but capital gains could put you over the AMT exemption threshold. That could cause the AMT to kick in, which means you may not be able to deduct state income taxes you paid. Exercising stock options.

What causes AMT income to increase?

Deductions for state and local taxes (such as property taxes) are targets, for example. A range of business items are curtailed. Investors also could face AMT. Long-term capital gains and certain dividends could push your income up into the AMT system.