Reg 5c- AMT Flashcards
1
Q
AMT
A
Objective all corporations should pay a minimum tax rate. the rate is a flat 20%
2
Q
AMT
A
Corporations have to pay the greater of their regular tax and AMT
3
Q
Taxable adjustments to determine AMT
A
- AMT allows only 150% declining balance or straight line methods
- Long term contracts can only use percentage of completion for AMT
4
Q
Exemption
A
- Corp is allowed a $40K exemption
- Reduced by 25% of AMTI that is greater than $150k.
- If AMTI is $310K or more than there is no exemption
5
Q
Small corp exemption
A
Exempt for AMT in first year of existance
