THIS AND THAT

* The Tax Foundation has issued a study that highlights, by Congressional district, where the dreaded Alternative Minimum Tax (AMT) hit hardest in 2004. As expected, the most AMT payers were in high-tax states like New York, California and New Jersey.

New Jersey had 3 districts in the top 10, with Congressional District #11 represented by Rodney Frelinghuysen, which covers Middlesex, Somerset and Hunterdon counties, the highest at number 5. The study indicates that 10.62% of the tax returns filed in this district were AMT victims. The other NJ Congressional Districts in the Top 10 were #5 and #7. The NJ residents in the Top 10 that were victims of the tax paid an average of $4,000+ in AMT.

Four districts in New York, two in California and one in Connecticut were in the Top 10. The Top 20 added a district each in Maryland and Illinois.

* The Internal Revenue Service has announced that the 2007 Nissan Altima Hybrid vehicle meets the requirements of the Alternative Motor Vehicle Credit as a qualified hybrid motor vehicle. The credit amount for the hybrid vehicle certification of the 2007 Nissan Altima Hybrid is $2,350.

Kay Bell of DON’T MESS WITH TAXES points out that if you want a Toyota hybrid, to get the current tax credit amounts, you must buy one by March 31. Right now the largest credit is $1,575 for a Prius. On April 1, the credit amount drops again.

The Small Business Taxes and Management website provides two excellent tables - “Vehicles Qualifying for New Energy Tax Credit and Alternative Energy Credit” and “Phase-Out of Credit for New Qualified Hybrid and Advanced Lean Burn Technology Motor Vehicles”.

Please remember that, as I pointed out in my December posting on “The AMT and the Energy Credit for Hybrid Vehicles”, the credit for purchasing a qualified hybrid vehicle is only allowable to the extent the “regular” income tax exceeds the AMT!

TTFN