As someone who has to calculate AMT every year and pay a little extra because of it … There is no “threshold” for AMT. It is simply a seaparate calculation that you must do and the taxpayer pays the higher of either AMT or their standard taxes.
For AMT calculations things that are excluded include the personal exemptions, property tax, state income tax, Home equity loans and amounts not used to purchase or remodel, and some other items. There is a large standard exemption for AMT (something like 50-60K for a couple).
You can get into the AMT if you make ~ 100K, live in a high state income tax state and have a bunch of children, for example because the exemption for each child is excluded for AMT purposes. A person in this circumstance is likely to pay AMT because they could be subject to little or no income tax under the standard tax code.
If you are a couple with no children making 250K and are renting you are likely not to be subject to AMT. Mainly because you are paying alot of taxes in the standard tax code.
A large mortgage actually helps with AMT, since home mortgage interest is deductible under AMT, (not including cash out or HELOCS used for other than home improvement).
You don’t get to deduct the property tax payment however.
FB’s who would be affected most are not those who recently purchasedat the peak, but those who purchased previously and subsequently did large cash out loans or HELOCS.
