Final answer:
Investors subject to the alternative minimum tax (AMT) should avoid certain tax deductions and exemptions to minimize their tax liability.
Step-by-step explanation:
Investors subject to the alternative minimum tax (AMT) should avoid certain tax deductions and exemptions to minimize their tax liability. The AMT is a separate tax system that prevents high-income individuals from using tax deductions to reduce their tax burden. To avoid triggering the AMT, investors should avoid deductions such as state and local taxes, property taxes, and miscellaneous itemized deductions. They should also avoid certain tax-exempt investments, as the income from these investments may still be subject to the AMT.