Dean Cibotti worked as a commission-only mortgage loan officer, for which Liberty Trust Mortgage Inc. paid him as a W-2 employee.
Mr. Cibotti noted that the W-2 category caused him to pay the AMT, so he deducted his business expenses on Schedule C.
To understand how the AMT can work against a mortgage loan officer, imagine that the mortgage loan officer
earns $200,000, and
incurs $125,000 of business expenses.
Your financial training says that the mortgage loan officer has a net income of $75,000. ... Log in to view full article.