AMT Calculation questions with complete solutions

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Main Calculation Correct Answer: Reg Taxable Income +/- Adjustments + Preference Items = AMTI - Exemption = AMT Base x Tax Computation = Tentative Minimum Tax - Regular Income Tax = AMT ... Pay AMT if greater than reg. tax (in addition to reg. tax) Exemption Amount Correct Answer: AMTI - Threshold = Excess x 25% = (####) + Standard Exemption = your exemption Adjustments Correct Answer: Plus or Minus: Passive Activity Losses Accelerated Depreciation (Post 1886) Net operating loss of the ind. taxpayer Installment income of dealer Contracts - (must use % completion) Plus: Tax deductions Interest Deductions on some home "equity loans" Medical Deductions (Over 10% AGI & 65 or older) Miscellaneous Deductions not allowed Exemptions (personal and standard deduction) Tax Preference Items Correct Answer: Private Activity Bond Interest Income Percentage depletion (excess over A/B) Pre-1987 accelerated depreciation ($$ over s/l) Credit for prior year minimum tax Correct Answer: May only offset regular tax, not future AMT AMT Credits Correct Answer: Foreign Tax Credit Adoption Credit [Show More]

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