Chapter 12 Flashcards
What is AMT
Alternative minimum tax. If it is higher than your regular tax it is how much you must pay.
What are common BTDs for AMT?
Depreciation, Private activity municipal bonds, circulation costs for newspapers
The AMT credit applies only to what
Regular income tax liability
Individuals under what income don’t pay AMT?
73k for single HH or 113k for MFJ
What are the rates for AMT
26% for the first 200k, 28% for the rest
What is tentative minimum tax for AMT
How much AMT world wants you to pay if it is larger than your regular tax amount.
Someone makes 500k with zero permanent tax tax differences (ignoring SD cause its so small). Would they pay AMT?
No because AMT rate is less than ordinary.
Someone makes zero cash salary with 60k in private activity bonds, would they pay AMT?
No because they makes less than the AMT exception.
