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The Short Answer

Is the AMT Costing Me More in Capital Gains Taxes?

The capital gains rate is the same under the alternative minimum tax, but those gains could have an additional impact on your tax bill.

Note: This article is part of Morningstar’s February 2014 Tax-Relief Week special report. This article originally appeared Feb. 4.

Question: A friend told me he pays a 22% long-term capital gains tax rate because he falls into the AMT but would have to pay only 15% if he didn't. How can that be?