Alternative minimum tax

[Joe Dunbar]

@Brandon Hall I am reaching out because I was unable to find anything on alternative minimum tax in the forums. Brandon, I feel like you would be able to help with the following question. I have been trying to do some tax planning for the future. I would like to manage a real estate fund as my day job in the future. lets just say hypothetically I am making $2 million a year from this and that is ordinary income. Hypothetically, my wife enjoys real estate so she works more than 750 hours in our personal investment real estate which would qualify her as a "real estate professional" which designation provides unlimited passive losses to ordinary income. We take our $2 milliion in ordinary income and my wife throws it into our personal real estate, we write off huge depreciation through property improvements and interest expense which brings our personal real estate into significant paper losses. we then use these significant paper losses to offset the $2 million in income. As long our as our personal real estate is a "business loss" (line 12 form 1040), can we avoid the alternative minimum tax ?