Alt Min Flashcards
1
Q
AltMin - Standard Deduction
A
- Disallowed
- Positive adjustment
2
Q
AltMin - Itemized Deductions
A
- Disallowed
- Positive adjustment
3
Q
AltMin - Investment interest expense
A
- Disallowed
- Positive adjustment
4
Q
AltMin - Exercise of ISOs
A
- Bargain element (spread) is an addback
- Positive adjustment
5
Q
Altmin - Tax benefit rule for state tax refund
A
- Not included in income!
- Negative adjustment
6
Q
AltMin - Depreciation of post-1986 property
A
- Alternative Depreciation System (ADS) allowed, not Modified Accel. Cost Recovery (MACRs)
- Adjustment could be positive or negative
7
Q
AltMin - Passive Activity Losses
A
Adjustment can be either positive or negative
8
Q
AltMin - Adjusted gain/loss
A
Adjustment can be either positive or negative
9
Q
AltMin Taxable Income
A
Regular taxable income
+ Positive AMT adjustments
– Negative AMT adjustments
+ Tax preferences
= AMTI
10
Q
AltMin Tax
A
AMTI
– AMT exemption
= Minimum tax base
× AMT rate
= Tentative AMT
– Regular income tax on taxable income
= AMT
11
Q
AMT Tax Credit
A
AMT may be used as credit against regular tax in future years
Carried forward, not backward
12
Q
AMT Exclusion items
A
- Std./Itemized deduction
- A portion of the exclusion of gain from qualified small business stock (S 1202) acquired before September 28, 2010
- Tax-exempt interest treated as a tax preference for AMT
- Percentage depletion treated as a tax preference for AMT
