REG 2 - Module 4

Question 1

Adjustments to AMT

Answer 1

PANICTS

PANIC - can increase or decrease
TS - can only increase

Passive activity losses
Accelerated depreciation (post 1986 purchase)
Net operating loss of the individual taxpayer
Installment income of a dealer
Contracts - % completion vs. completed contract
Tax “deductions”
Standard deduction

Question 2

Tax preference items for AMT

Answer 2

PPP

PPP - always increase

Private activity bond interest income
Percentage depletion deduction (excess over adjusted basis of the property)
Pre-1987 accelerated depreciation

Question 3

Credits permitted to reduce AMT

Answer 3

FACCEE it!

Foreign
Adoption
Child
Contribution IRA
Earned
Energy