Does interest or dividends from tax-free mutual funds bypass the alternative minimum tax?

January 29, 2007

From:  Orrin
Date:  Wed, 22 Nov 2006

Hi Mike -

Does interest or dividends from tax-free mutual funds bypass the AMT?

Thanks,
Orrin

Answer

Date:  Fri, 29 Dec 2006

Hello Orrin,

Interest or dividends from tax-free mutual funds that represents private activity bond interest is subject to the AMT. The fund should provide you with a notification about any income subject to the AMT.

Good luck!
Mike Gray

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