Use certain strategies to help avoid the Alternative Minimum Tax.

The following are strategies to help avoid the Alternative Minimum Tax:

1. Don’t prepay state income and property taxes in years the taxpayer may be subject to the Alternative Minimum Tax.

2. Time the recognition of capital gains. Capital gains are taxed at a 15% rate income. However, they increase taxable income subject to the Alternative Minimum Tax.

3. Since the Alternative Minimum Tax disallows personal exemptions, take college-age children off the tax return and let them claim the personal exemption.