Chapter 15 AMT

Question 1

AMT formula

Answer 1

Taxable Income + adjustments that increase AMTI - adjustments that decrease AMTI + preferences = AMTI

AMTI - exemptions = AMT tax base

AMT tax base x AMT rate = Tentative minimum tax

Tentative minimum tax - foreign tax credit - regular tax liability = AMT

Question 2

AMT exemption

Answer 2

Single/HOH $75,900
MFJ $118,100
MFS $59,050

Question 3

AMT phaseout

Answer 3

25% of amount that exceeds
Single/HOH $539,900
MFJ $1,079,800
MFS $539,900

Question 4

AMT exemption formula

Answer 4

AMTI - phaseout threshold x .25 = amount exemption should be reduced
exemption - reduction = new exemption

Question 5

AMT flat tax

Answer 5

up to $206,100 26%
everything over that 28%

Question 6

Exclusion items

Answer 6

Permanent increase in tax
Itemized/standard deductions
Private activity muni bond interest

Question 7

Deferral items

Answer 7

Time difference of tax payment
depreciation