Individual Taxation - AMT

Question 1

T/F

State Income Taxes are itemized deductions that are deductible when computing AMT for individuals

Answer 1

FALSE

Question 2

T/F

Home Equity Mortgage Interest when the loan proceeds were used to purchase an auto are itemized deductions that are deductible when computing AMT for individuals

Answer 2

FALSE

Question 3

T/F

Unreimbusred employee expenses in excess of 2% of AGI are itemized deductions that are deductible when computing AMT for individuals

Answer 3

FALSE

Question 4

T/F

Gambling Losses are itemized deductions that are deductible when computing AMT for individuals

Answer 4

TRUE

Question 5

How do you treat a personal exemption when computing AMT?

Answer 5

A personal exemption is an adjustment - it is deductible in computing regular taxable income but is not deductible in computing AMTI

Question 6

How do you treat an itemized deduction for state taxes when computing AMT?

Answer 6

The itemized deduction for state taxes is an adjustment - it is deductible in computing regular taxable income but is not deductible in computing AMTI

Question 7

How do you treat Tax-Exempt Interest from Private Activity Bonds issued in 2008 when computing AMT?

Answer 7

This is a tax preference - it must be added to regular taxable income in arriving at AMTI. Note that tax-exempt interest on private activity bonds issued in 2009 and 2010 are not tax preference items.

Question 8

These are added or subtracted from regular taxable income to determine the “taxable income after AMT adjustments.”

Answer 8

Tax Adjustments

Question 9

These items are added to get your AMTI.

Answer 9

Tax Preferences

Question 10

T/F

Standard deductions/personal exemptions are allowable deductions under AMT

Answer 10

FALSE

These are tax adjustments

Question 11

T/F

Mortgage interest is an allowable deductions under AMT as long as the mortgage loan is used to acquire a residence

Answer 11

TRUE

Question 12

T/F

Taxes are an allowable deductions under AMT

Answer 12

FALSE

No AMT deduction is allowed for state, local, and foreign income taxes

Question 13

T/F

Medical Expenses are not an allowable deductions under AMT

Answer 13

TRUE

Question 14

T/F

Investment interest is not allowable deductions under AMT

Answer 14

TRUE

Question 15

T/F

MACRS depreciation is not an allowable deductions under AMT

Answer 15

TRUE

Question 16

T/F

Incentive Stock Options are an allowable deductions under AMT

Answer 16

FALSE

Question 17

T/F

Mining exploration and development costs are an allowable deductions under AMT

Answer 17

FALSE

Question 18

T/F

Research & experimental procedures are an allowable deductions under AMT

Answer 18

FALSE

Question 19

T/F

No AMT deduction is allowed for real and personal property taxes

Answer 19

TRUE

Question 20

T/F

No AMT deduction is allowed for miscellaneous itemized deductions subject to the 2% of AGI floor

Answer 20

TRUE

Question 21

T/F

An individuals AMT adjustments include net long-term capital gain in excess of net short-term capital loss

Answer 21

FALSE

Question 22

T/F

An individual’s AMT adjustments include home equity interest expenses where loan proceeds were not used to buy, build, or improve the home

Answer 22

TRUE

Question 23

The credit for prior year AMT liability may be carried _______

Answer 23

Forward Indefinitely

Question 24

The AMT is computed as ______

Answer 24

The excess of the tentative AMT over the regular tax