Individual Taxation - AMT Flashcards Preview

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Flashcards in Individual Taxation - AMT Deck (24):
1

T/F

State Income Taxes are itemized deductions that are deductible when computing AMT for individuals

FALSE

2

T/F

Home Equity Mortgage Interest when the loan proceeds were used to purchase an auto are itemized deductions that are deductible when computing AMT for individuals

FALSE

3

T/F

Unreimbusred employee expenses in excess of 2% of AGI are itemized deductions that are deductible when computing AMT for individuals

FALSE

4

T/F

Gambling Losses are itemized deductions that are deductible when computing AMT for individuals

TRUE

5

How do you treat a personal exemption when computing AMT?

A personal exemption is an adjustment - it is deductible in computing regular taxable income but is not deductible in computing AMTI

6

How do you treat an itemized deduction for state taxes when computing AMT?

The itemized deduction for state taxes is an adjustment - it is deductible in computing regular taxable income but is not deductible in computing AMTI

7

How do you treat Tax-Exempt Interest from Private Activity Bonds issued in 2008 when computing AMT?

This is a tax preference - it must be added to regular taxable income in arriving at AMTI. Note that tax-exempt interest on private activity bonds issued in 2009 and 2010 are not tax preference items.

8

These are added or subtracted from regular taxable income to determine the "taxable income after AMT adjustments."

Tax Adjustments

9

These items are added to get your AMTI.

Tax Preferences

10

T/F

Standard deductions/personal exemptions are allowable deductions under AMT

FALSE

These are tax adjustments

11

T/F

Mortgage interest is an allowable deductions under AMT as long as the mortgage loan is used to acquire a residence

TRUE

12

T/F

Taxes are an allowable deductions under AMT

FALSE

No AMT deduction is allowed for state, local, and foreign income taxes

13

T/F

Medical Expenses are not an allowable deductions under AMT

TRUE

14

T/F

Investment interest is not allowable deductions under AMT

TRUE

15

T/F

MACRS depreciation is not an allowable deductions under AMT

TRUE

16

T/F

Incentive Stock Options are an allowable deductions under AMT

FALSE

17

T/F

Mining exploration and development costs are an allowable deductions under AMT

FALSE

18

T/F

Research & experimental procedures are an allowable deductions under AMT

FALSE

19

T/F

No AMT deduction is allowed for real and personal property taxes

TRUE

20

T/F

No AMT deduction is allowed for miscellaneous itemized deductions subject to the 2% of AGI floor

TRUE

21

T/F

An individuals AMT adjustments include net long-term capital gain in excess of net short-term capital loss

FALSE

22

T/F

An individual's AMT adjustments include home equity interest expenses where loan proceeds were not used to buy, build, or improve the home

TRUE

23

The credit for prior year AMT liability may be carried _______

Forward Indefinitely

24

The AMT is computed as ______

The excess of the tentative AMT over the regular tax