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Flashcards in Taxes: Corporate AMT Deck (4)
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1

Taxes:
Corporate AMT
Small Corporation Exemption

Small Corporation Exemption
Gross Reciepts Test
- avg annual gross reciepts for pas 3 years do not exceed $7.5M
- new corporations, always zero in first year

2

Taxes:
Corporate AMT
Preferences

Preferences
- tax exempt interest on private activity bonds
- excess of % depletion over adjusted basis
- excess intangible drilling and development costs

3

Taxes:
Corporate AMT
Adjustments

Adjustments
- AMT applies only to 3,5,7,10 year property depreciated using the 200% double declining balance
- differences in gain/loss caused by different bases in assets
- difference in % completion over completed contract

4

Taxes:
Corporate AMT
Adjusted Current Earnings

Adjusted Current Earnings
Adjustments:
+ life insurance proceeds less expenses
+ municipal interest income
+ 70% DRD
+/- installment method
+ intangible drilling
+ organizations expense amortization
No Adjustments:
- excess charitable donations
- net capital losses
- penalties
- disallowed travel & entertainment
- federal income taxes
80% & 100% DRD
*** if ACE>AMTI then 75% of difference

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