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15 Cards in this Set

  • Front
  • Back
Who does AMT apply to?
Corporations and individuals
Are any corporations exempt from AMT? If yes, who?
Small corporations - Gross receipts less than $5MM.
What is an AMT credit. How long are AMT credits carried forward?
AMT credit is AMT paid in previous years. It is carried forward indefinitely.
When is the payment for AMT due?
By the original filling date.
Corps = March 15
Individual = April 15
What triggers AMT to be paid
When the gross AMT is higher than the regular corp income tax
What are AMT adjustments?
List 3 examples.
Timing differences, adjustments increase taxable income and they are reversed in later years.
1. Diff btwn reg. tax depr. and AMT depr.
2. The diff. btwn the gain reported for AMT by the %of completion method over gain reported on the completed contract method for regular tax.
3. 75% of the diff btwn ACE and gross AMTI before this adjustment
What is AMTI?
Taxable income that is derived from
For individuals, what is the 2006 exemption amount?
$42,500 for single, 62,550 for married
What form is the PY AMT credit on?
What are the most common causes of AMT liability for individuals
1. Non taxable interet income from private activity bonds.
2. Numerous personal and dependency exemptions
3. Unusually large medical expenses
4. Large amounts of state and local taxes and misc itemized deductions
5. The bargain element of incentive stock options
What itemized deductions are allowed with AMT?
1. Medical expenses in excess of 10% of AGI.
2. Casualty & theft in excess of 10% of AGI.
3. Charitable contributions, investment interest or acquisition interest on a home mortgage.
What itemized deductions are NOT allowed with AMT?
1. No deduction for taxes or home equity interest.
2. No misc itemized deductions
On Sch A, total itemized deductions are reduced by what percentage in excess of AGI over $150,500.
If a person expects to be caught by AMT, what should they do?
What tax bracket of people do not need to worry about AMT?
1. Shift AMT itemized deductions to a future year where AMT won't take effect.
The 33 and above tax bracket are not affected by AMT.
What are private activity bonds?
Muni bonds that have 10% or more of the proceeds used for private biz operations rather than for the activities of the governmental unit itself.