M5: Corporate AMT Flashcards
1
Q
AMT Summary
A
Regular Taxable Income
Adjust for gain/loss
Long-Term contracts
Installment sales (dealers)
Excess depreciation
Percentage depletion
Private activity - issued post 1986
Tax exempt interest
Pre 1987 ACRS excess depreciation
Municipal interest income (+)
Organizational expense amortization (+)
Life insurance proceeds on key employees (+)
Difference between AMT and ACE depreciation
Dividends received deduction (under 20% ownership) (+)
(Adjusted Current Earnings) ACE - 75 % diff btwn ACE and AMTI
= Alternative minimum taxable income (AMTI)
$40k less 25% of MTI over $150k
= Alternative minimum tax base x 20%
= Tentative minimum tax - Regular tax liability
= Alternative minimum tax
