AMT

Question 1

Adjustments to regular income (adds or subtracts: PANIC)

Answer 1

Passive activity losses are added back
Accelerated depr adj
       *on real prop: diff between reg tax depr
         and SL 40yr
       *on personal prop: diff between reg tax
         depr and 150db
       *no adj for 179 prop
Net operating loss must be recomputed
Installment method may not be used by
        dealer for prop sales
Contracts (long-term)

Question 2

Itemized Deductions to regular income (always adds: TIMME)

Answer 2

Taxes reduced by taxable refunds
Interest (mortg not used to buy/redo home 
         and Investment int exp recalc)
Medical exp must be >10%AGI
Misc deductions subject to 2% floor not
         allowed
Exemptions - personal & std ded may not
         be claimed

Question 3

Tax Preference Items (always adds: PPP)

Answer 3

Private activity bond tax-exempt interest
Pre-1987 accelerated depr on real and
leased property (excess over SL)
Percentage Depletion deduction

Question 4

AMT Credits (FACCE)

Answer 4

Foreign tax credit
Adoption Credit
Child tax credit
Contributions to retirement plans
Earned income credit