REG 2. 4 (AMT)

Question 1

What is the AMT formula?

Answer 1

Regular taxable income
\+- Adjustments
\+preferences
= AMTI
- exemption amount
AMT base
* AMT rate
= tentative AMT tax

TMT

= AMT

Question 2

What are the exemption amounts for Single taxpayer and MFJ

Answer 2

Single: $72,900
MFJ: $113,400

Question 3

What are the AMTI phase-out thresholds for MFJ & single taxpayers

Answer 3

MFJ: $1,036,800
Single: $518,400

Question 4

Name type of adjustments for AMT?

Answer 4

PANIC TS

Question 5

What does the mneuomonic PANIC TS stand for?

Answer 5

1) Passive Activity (+/-)
2) Accelerated Depreciation (+/-)
3) NOL (+/-)
4) Installment income (+/-)
5) Contracts- % of completion (+/-)

6) Tax deductions (SALT) +
7) Standard deduction (+)

Question 6

What are some tax preference items?

Answer 6

PPP

1) Private activity bond interest **perm difference
2) Percentage depletion **perm difference
3) Pre-1987 depreciation

Question 7

How do you treat credit of PY minimum Tax?

Answer 7

• Certain allowable AMT paid in a taxable year can be carried over as a credit to subsequent years
• Can reduce regular tax (NOT future amt)
• the CF = forever
• *Permanent differences cannot be CF

Question 8

Is the Passive activity adjustment (+/-)?

Answer 8

Added back

Question 9

Accelerated depreciation adjustment (+/-)?

Answer 9

No adjustment required for property expensed under section 179

Question 10

Which itemized deductions must be added back to AMT calc?

Answer 10

**SALT

taxes

Question 11

Which non-refundable tax credits can be used to reduce AMTI?

Answer 11

1) Child & dependent care credit
2) Adoption credit
3) child tax credit
4) contributions to retirement plans credit
5) residential energy credit