Reg Flashcards - Chapter 2
1
Q
Chapter 2
Exemption for AMT
A
Single: $52,800 - (25%(AMTI-117,300))
Joint: $82,100 - (25%(AMTI-156,500))
2
Q
Chapter 2
AMT Adjustments
A
PANIC TIMME:
- Passive Activity Losses
- Accelerated depreciation (post-1986 purchase)
- NOL of the individual taxpayer
- Installment income of a dealer
- Contracts - % completion v. completed contract
- Tax “deductions”
- Interest deductions on some home “equity loans”
- Medical deductions (limited to excess over 10%)
- Miscellaneous deductions not allowed
- Exemptions (personal) and standard deductions
3
Q
Chapter 2
AMT Preferences
A
ALWAYS ADD BACKS
- Private activity bonds
- Percentage depletion (the excess over adjusted basis on property)
- Pre-1987 accelerated depreciation
4
Q
Chapter 2
Prior year AMT Credits
A
Can be carried forward forever, but can only be applied against regular tax not used against AMT tax
5
Q
Chapter 2
AMT Credits
A
FACCE:
- Foreign tax credits
- Adoption credit
- Child tax credit
- Contributions to retirement plan credit
- Earned income credit
6
Q
Chapter 2
Form 1139
A
Claim a refund of corporate income tax
7
Q
Chapter 2
Form 1045
A
Used to request a quick refund of individual income tax due to the carryback of a NOL
8
Q
Chapter 2
Form 843
A
Used to request a refund of taxes other than income tax
9
Q
Chapter 2
Estimated tax payment requirements
A
- $1,000+ tax liability
2. Inadequate tax estimates
10
Q
Chapter 2
Hierarchy of authority in the tax law
A
- Internal Revenue Code
- IRS Regulations
- Tax Court Decisions
- IRS Agent REports
11
Q
Chapter 2
Statements on Standards for Tax Services (SSTSs)
A
- Tax return positions
- Answers to questions on returns
- Certain procedural aspects of preparing returns (no responsibility to verify info)
- Use of estimates
- Departure from a position previously concluded (consistency not required)
- Knowledge of error
- Form and content of advice to taxpayer
