Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning...

37
C15- C15-1 Comprehensive Volume Comprehensive Volume Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume

Transcript of Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning...

Page 1: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-11Comprehensive VolumeComprehensive Volume

Chapter 15Chapter 15

Alternative Minimum TaxAlternative Minimum Tax

Copyright ©2010 Cengage Learning

Comprehensive Volume

Page 2: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-22Comprehensive VolumeComprehensive Volume

Alternative Minimum Tax (AMT)

Alternative Minimum Tax (AMT)

• AMT is separate from, but parallel to, the regular income tax system

• The AMT computation reconciles taxable income, through adjustments and preferences, with Alternative Minimum Taxable Income (AMTI)

• AMT is separate from, but parallel to, the regular income tax system

• The AMT computation reconciles taxable income, through adjustments and preferences, with Alternative Minimum Taxable Income (AMTI)

Page 3: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-33Comprehensive VolumeComprehensive Volume

Computation of AMTComputation of AMT

• AMT formula:Taxable income± Adjustments+ PreferencesAMTI– ExemptionAMT base× AMT rate(s)Tentative minimum tax– Foreign tax credit

– Regular tax Equals AMT

• AMT formula:Taxable income± Adjustments+ PreferencesAMTI– ExemptionAMT base× AMT rate(s)Tentative minimum tax– Foreign tax credit

– Regular tax Equals AMT

Page 4: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-44Comprehensive VolumeComprehensive Volume

AMT Adjustments And Preferences (slide 1 of 3)

AMT Adjustments And Preferences (slide 1 of 3)

• Most AMT adjustments relate to timing differences – Timing differences eventually reverse

• Positive adjustments will be offset by negative adjustments in the future, and vice versa

– Example - circulation expenditures • For regular income tax purposes, circulation expenditures can be

deducted in the year incurred• For AMT purposes, however, circulation expenditures must be

deducted over a three-year period

• Certain AMT adjustments do not relate to timing differences – These adjustments result in a permanent difference between

taxable income and AMTI• e.g., Itemized deductions

• Most AMT adjustments relate to timing differences – Timing differences eventually reverse

• Positive adjustments will be offset by negative adjustments in the future, and vice versa

– Example - circulation expenditures • For regular income tax purposes, circulation expenditures can be

deducted in the year incurred• For AMT purposes, however, circulation expenditures must be

deducted over a three-year period

• Certain AMT adjustments do not relate to timing differences – These adjustments result in a permanent difference between

taxable income and AMTI• e.g., Itemized deductions

Page 5: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-55Comprehensive VolumeComprehensive Volume

AMT Adjustments And Preferences (slide 2 of 3)

AMT Adjustments And Preferences (slide 2 of 3)

• AMT Preferences– Designed to take back all or part of the tax

benefits obtained by certain items in the computation of taxable income for regular income tax purposes

• Taxable income is increased by tax preference items effectively disallowing those tax benefits for AMT purposes

• AMT Preferences– Designed to take back all or part of the tax

benefits obtained by certain items in the computation of taxable income for regular income tax purposes

• Taxable income is increased by tax preference items effectively disallowing those tax benefits for AMT purposes

Page 6: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-66Comprehensive VolumeComprehensive Volume

AMT Adjustments And Preferences (slide 3 of 3)

AMT Adjustments And Preferences (slide 3 of 3)

• Tax preferences include:– Percentage depletion in excess of basis– Excess intangible drilling costs– Interest on certain private activity bonds– Excess of accelerated over straight-line depreciation on

real & leased personal property placed in service before 1987

– Excess of amortization allowance over depreciation on pre-1987 certified pollution control facilities

– 7% of the exclusion from gross income of gains on the sale of certain small business stock

• Tax preferences include:– Percentage depletion in excess of basis– Excess intangible drilling costs– Interest on certain private activity bonds– Excess of accelerated over straight-line depreciation on

real & leased personal property placed in service before 1987

– Excess of amortization allowance over depreciation on pre-1987 certified pollution control facilities

– 7% of the exclusion from gross income of gains on the sale of certain small business stock

Page 7: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-77Comprehensive VolumeComprehensive Volume

Other Components of AMT(slide 1 of 3)

Other Components of AMT(slide 1 of 3)

• Exemption amount– The exemption reduces AMTI to arrive at the

base on which AMT is computed– The initial exemption amount is:

• $46,700 for single

• $70,950 for married, filing jointly

• $35,475 for married, filing separately

• Exemption amount– The exemption reduces AMTI to arrive at the

base on which AMT is computed– The initial exemption amount is:

• $46,700 for single

• $70,950 for married, filing jointly

• $35,475 for married, filing separately

Page 8: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-88Comprehensive VolumeComprehensive Volume

Other Components of AMT(slide 2 of 3)

Other Components of AMT(slide 2 of 3)

• Exemption amount– Exemption amount is reduced by 25% of AMTI

in excess of• $112,500 for single

• $150,000 for married, filing jointly

• $75,000 for married, filing separately

• Exemption amount– Exemption amount is reduced by 25% of AMTI

in excess of• $112,500 for single

• $150,000 for married, filing jointly

• $75,000 for married, filing separately

Page 9: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-99Comprehensive VolumeComprehensive Volume

Other Components of AMT(slide 3 of 3)

Other Components of AMT(slide 3 of 3)

• AMT rates– A progressive rate structure is applied to the tax

base (AMTI less exemption amount)• 26% on first $175,000 ($87,500 for married, filing

separately) of tax base• 28% on remaining amount of tax base

– Net capital gain and qualified dividend income included in AMT base are taxed at favorable alternative tax rates (15% or 0%)

• AMT rates– A progressive rate structure is applied to the tax

base (AMTI less exemption amount)• 26% on first $175,000 ($87,500 for married, filing

separately) of tax base• 28% on remaining amount of tax base

– Net capital gain and qualified dividend income included in AMT base are taxed at favorable alternative tax rates (15% or 0%)

Page 10: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1010Comprehensive VolumeComprehensive Volume

Personal Tax Credits Personal Tax Credits

• For tax years 2000–2009– All nonrefundable personal credits can offset

both the regular income tax (less foreign tax credit) and the AMT

• For tax years 2000–2009– All nonrefundable personal credits can offset

both the regular income tax (less foreign tax credit) and the AMT

Page 11: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1111Comprehensive VolumeComprehensive Volume

Adjustments (slide 1 of 15)

Adjustments (slide 1 of 15)

• Since adjustments tend to arise from timing differences between regular tax and AMT– Adjustments can be positive or negative, and

will generally reverse in later years

• Since adjustments tend to arise from timing differences between regular tax and AMT– Adjustments can be positive or negative, and

will generally reverse in later years

Page 12: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1212Comprehensive VolumeComprehensive Volume

Adjustments (slide 2 of 15)

Adjustments (slide 2 of 15)

• Circulation expenditures– Amortized over 3 years for AMT

• Expensed in year incurred for regular tax

• Circulation expenditures– Amortized over 3 years for AMT

• Expensed in year incurred for regular tax

Page 13: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1313Comprehensive VolumeComprehensive Volume

Adjustments (slide 3 of 15)

Adjustments (slide 3 of 15)

• The AMT depreciation adjustment for real property applies only to real property placed in service before January 1, 1999

• For real property placed in service after December 31, 1998, MACRS recovery periods apply for AMT– Thus, the AMT adjustment is effectively eliminated

• The AMT depreciation adjustment for real property applies only to real property placed in service before January 1, 1999

• For real property placed in service after December 31, 1998, MACRS recovery periods apply for AMT– Thus, the AMT adjustment is effectively eliminated

Page 14: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1414Comprehensive VolumeComprehensive Volume

Adjustments (slide 4 of 15)

Adjustments (slide 4 of 15)

• For real property placed in service after 1986 (MACRS property) and before January 1, 1999– AMT depreciation is computed under the alternative

depreciation system (ADS)• Uses the straight-line method over a 40-year life

– Regular tax MACRS lives are 27.5, 31.5, and 39 years

• For real property placed in service after 1986 (MACRS property) and before January 1, 1999– AMT depreciation is computed under the alternative

depreciation system (ADS)• Uses the straight-line method over a 40-year life

– Regular tax MACRS lives are 27.5, 31.5, and 39 years

Page 15: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1515Comprehensive VolumeComprehensive Volume

Adjustments (slide 5 of 15)

Adjustments (slide 5 of 15)

• Depreciation of post-1986 personal property– AMT method is 150% DB over ADS life

– Regular tax is generally MACRS method based on 200% DB over shorter lives

• Effective for personalty placed in service after 12/31/98, MACRS recovery periods are to be used for AMT– If 150% DB is elected for this property, there is no

AMT adjustment

• Depreciation of post-1986 personal property– AMT method is 150% DB over ADS life

– Regular tax is generally MACRS method based on 200% DB over shorter lives

• Effective for personalty placed in service after 12/31/98, MACRS recovery periods are to be used for AMT– If 150% DB is elected for this property, there is no

AMT adjustment

Page 16: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1616Comprehensive VolumeComprehensive Volume

Adjustments (slide 6 of 15)

Adjustments (slide 6 of 15)

• Pollution control facilities– Depreciate under the ADS over appropriate

class life for AMT• Amortize over 60 months for regular tax purposes

– Effective for pollution control facilities placed in service after 12/31/98, MACRS recovery periods are to be used for AMT

• Pollution control facilities– Depreciate under the ADS over appropriate

class life for AMT• Amortize over 60 months for regular tax purposes

– Effective for pollution control facilities placed in service after 12/31/98, MACRS recovery periods are to be used for AMT

Page 17: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1717Comprehensive VolumeComprehensive Volume

Adjustments (slide 7 of 15)

Adjustments (slide 7 of 15)

• Mining exploration/development costs and research/experimental expenditures– Amortized over 10 years for AMT

• Expensed in year incurred for regular tax purposes

– Taxpayer may elect to capitalize and amortize over 10 years for regular tax purposes and thus avoid the AMT adjustment

• Mining exploration/development costs and research/experimental expenditures– Amortized over 10 years for AMT

• Expensed in year incurred for regular tax purposes

– Taxpayer may elect to capitalize and amortize over 10 years for regular tax purposes and thus avoid the AMT adjustment

Page 18: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1818Comprehensive VolumeComprehensive Volume

Adjustments (slide 8 of 15)

Adjustments (slide 8 of 15)

• Completed contract method– AMT requires the use of percentage of

completion method for long-term contracts rather than completed contract method

• Completed contract method– AMT requires the use of percentage of

completion method for long-term contracts rather than completed contract method

Page 19: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-1919Comprehensive VolumeComprehensive Volume

Adjustments (slide 9 of 15)

Adjustments (slide 9 of 15)

• Incentive stock options (ISOs)– The exercise of an ISO can cause income for

AMT purposes that is not currently taxable for regular tax purposes

• Excess of FMV over exercise price is adjustment in year stock is freely transferable or not subject to substantial risk of forfeiture

• Incentive stock options (ISOs)– The exercise of an ISO can cause income for

AMT purposes that is not currently taxable for regular tax purposes

• Excess of FMV over exercise price is adjustment in year stock is freely transferable or not subject to substantial risk of forfeiture

Page 20: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2020Comprehensive VolumeComprehensive Volume

Adjustments (slide 10 of 15)

Adjustments (slide 10 of 15)

• Adjusted gain or loss– Since the adjusted basis of an asset can be

different for regular tax and AMT, gain or loss recognized upon the disposition of an asset may vary for the two tax systems

– Difference between regular tax gain (loss) and AMT gain (loss) is adjustment

• Adjusted gain or loss– Since the adjusted basis of an asset can be

different for regular tax and AMT, gain or loss recognized upon the disposition of an asset may vary for the two tax systems

– Difference between regular tax gain (loss) and AMT gain (loss) is adjustment

Page 21: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2121Comprehensive VolumeComprehensive Volume

Adjustments (slide 11 of 15)

Adjustments (slide 11 of 15)

• Passive activity losses– Passive losses must be recomputed for AMT

using AMT provisions

• Passive activity losses– Passive losses must be recomputed for AMT

using AMT provisions

Page 22: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2222Comprehensive VolumeComprehensive Volume

Adjustments (slide 12 of 15)

Adjustments (slide 12 of 15)

• Net operating loss (NOL)– NOL must be recomputed for AMT using AMT

provisions

• Net operating loss (NOL)– NOL must be recomputed for AMT using AMT

provisions

Page 23: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2323Comprehensive VolumeComprehensive Volume

Adjustments (slide 13 of 15)

Adjustments (slide 13 of 15)

• Itemized deductions allowed for AMT purposes include:

• Casualty losses• Gambling losses• Charitable contributions• Medical expenses in excess of 10% of AGI• Estate tax attributable to IRD• Qualified interest

– May differ from regular tax allowed qualified residence and investment interest

• Itemized deductions allowed for AMT purposes include:

• Casualty losses• Gambling losses• Charitable contributions• Medical expenses in excess of 10% of AGI• Estate tax attributable to IRD• Qualified interest

– May differ from regular tax allowed qualified residence and investment interest

Page 24: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2424Comprehensive VolumeComprehensive Volume

Adjustments (slide 14 of 15)

Adjustments (slide 14 of 15)

• Itemized deductions not allowed for AMT:– Taxes and miscellaneous itemized deductions

subject to the 2% AGI limit

• Itemized deduction cutback does not apply for AMT– Regular tax cutback amount reduces AMTI

• Itemized deductions not allowed for AMT:– Taxes and miscellaneous itemized deductions

subject to the 2% AGI limit

• Itemized deduction cutback does not apply for AMT– Regular tax cutback amount reduces AMTI

Page 25: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2525Comprehensive VolumeComprehensive Volume

Adjustments (slide 15 of 15)

Adjustments (slide 15 of 15)

• Other adjustments– AMT does not allow the standard deduction

and personal and dependency exemptions

• Other adjustments– AMT does not allow the standard deduction

and personal and dependency exemptions

Page 26: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2626Comprehensive VolumeComprehensive Volume

Preferences (slide 1 of 5)

Preferences (slide 1 of 5)

• Preferences tend to arise because of deductions or exclusions that provide substantial tax benefits – Unlike adjustments, preferences can only be

positive (i.e., increase AMTI)– Thus, preferences reduce the benefits initially

received when computing regular tax

• Preferences tend to arise because of deductions or exclusions that provide substantial tax benefits – Unlike adjustments, preferences can only be

positive (i.e., increase AMTI)– Thus, preferences reduce the benefits initially

received when computing regular tax

Page 27: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2727Comprehensive VolumeComprehensive Volume

Preferences (slide 2 of 5)

Preferences (slide 2 of 5)

• Percentage depletion– Preference is the amount of percentage

depletion taken for regular tax which is in excess of the adjusted basis of the property at the end of the year

• Percentage depletion– Preference is the amount of percentage

depletion taken for regular tax which is in excess of the adjusted basis of the property at the end of the year

Page 28: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2828Comprehensive VolumeComprehensive Volume

Preferences (slide 3 of 5)

Preferences (slide 3 of 5)

• Intangible drilling costs– AMT requires 10 year amortization; deductible

currently for regular tax– Preference is excess of regular tax deduction

over [AMT amortization plus (65% × net oil & gas income)]

• Intangible drilling costs– AMT requires 10 year amortization; deductible

currently for regular tax– Preference is excess of regular tax deduction

over [AMT amortization plus (65% × net oil & gas income)]

Page 29: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-2929Comprehensive VolumeComprehensive Volume

Preferences (slide 4 of 5)

Preferences (slide 4 of 5)

• Interest on private activity bonds– This interest is not taxable for regular tax purposes but

is included in income for AMT purposes

– Expenses incurred in carrying these bonds are not deductible for regular tax purposes, but offset the interest income in computing the AMT preference

– Interest on private activity bonds issued after December 31, 2008 and before January 1, 2011 is not treated as a tax preference

• Interest on private activity bonds– This interest is not taxable for regular tax purposes but

is included in income for AMT purposes

– Expenses incurred in carrying these bonds are not deductible for regular tax purposes, but offset the interest income in computing the AMT preference

– Interest on private activity bonds issued after December 31, 2008 and before January 1, 2011 is not treated as a tax preference

Page 30: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3030Comprehensive VolumeComprehensive Volume

Preferences (slide 5 of 5)

Preferences (slide 5 of 5)

• 50% exclusion of gain on sale of certain small business stock is excludible from gross income for regular tax– 7% of the excluded amount is a tax preference

for AMT

• 50% exclusion of gain on sale of certain small business stock is excludible from gross income for regular tax– 7% of the excluded amount is a tax preference

for AMT

Page 31: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3131Comprehensive VolumeComprehensive Volume

AMT CreditAMT Credit

• AMT attributable to timing differences is AMT Credit– Excess of AMT over AMT computed without

timing differences

• AMT credit can be carried forward (indefinitely) to be used to offset regular income tax liability– Cannot carryback or use against AMT liability

• AMT attributable to timing differences is AMT Credit– Excess of AMT over AMT computed without

timing differences

• AMT credit can be carried forward (indefinitely) to be used to offset regular income tax liability– Cannot carryback or use against AMT liability

Page 32: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3232Comprehensive VolumeComprehensive Volume

Corporate AMT(slide 1 of 4)

Corporate AMT(slide 1 of 4)

• Major differences in AMT rules for corporations– AMT rate is a flat 20%– Exemption amount is $40,000

• Reduced by 25% of amount by which AMTI exceeds $150,000

• Major differences in AMT rules for corporations– AMT rate is a flat 20%– Exemption amount is $40,000

• Reduced by 25% of amount by which AMTI exceeds $150,000

Page 33: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3333Comprehensive VolumeComprehensive Volume

Corporate AMT(slide 2 of 4)

Corporate AMT(slide 2 of 4)

• Major differences in AMT rules for corporations (cont’d)– Adjusted current earnings (ACE) adjustment

• Adjustment = 75% × (ACE – AMTI before ACE)

• ACE employs some earnings and profits concepts but certain differences exist

• Adjustment can be positive or negative

• Major differences in AMT rules for corporations (cont’d)– Adjusted current earnings (ACE) adjustment

• Adjustment = 75% × (ACE – AMTI before ACE)

• ACE employs some earnings and profits concepts but certain differences exist

• Adjustment can be positive or negative

Page 34: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3434Comprehensive VolumeComprehensive Volume

Corporate AMT(slide 3 of 4)

Corporate AMT(slide 3 of 4)

• AMT is repealed for small corporations for tax years beginning after 12/31/97– Small corporation has average annual gross

receipts of not more than $5 million for the 3 year period beginning after December 1993

– Retains classification if average gross receipts for the 3 year period preceding the current year do not exceed $7.5 million

• AMT is repealed for small corporations for tax years beginning after 12/31/97– Small corporation has average annual gross

receipts of not more than $5 million for the 3 year period beginning after December 1993

– Retains classification if average gross receipts for the 3 year period preceding the current year do not exceed $7.5 million

Page 35: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3535Comprehensive VolumeComprehensive Volume

Corporate AMT(slide 4 of 4)

Corporate AMT(slide 4 of 4)

• A new corporation is automatically classified as a small corporation its first tax year of existence

• A new corporation is automatically classified as a small corporation its first tax year of existence

Page 36: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3636Comprehensive VolumeComprehensive Volume

Minimum Tax CreditMinimum Tax Credit

• All of a corporation’s AMT is available for carryover as a minimum tax credit– Does not matter whether the adjustments and

preferences originate from timing differences or AMT exclusions

• All of a corporation’s AMT is available for carryover as a minimum tax credit– Does not matter whether the adjustments and

preferences originate from timing differences or AMT exclusions

Page 37: Comprehensive Volume C15-1 Chapter 15 Alternative Minimum Tax Copyright ©2010 Cengage Learning Comprehensive Volume.

C15-C15-3737Comprehensive VolumeComprehensive Volume

If you have any comments or suggestions concerning this PowerPoint Presentation for South-Western Federal Taxation, please contact:

Dr. Donald R. Trippeer, CPA [email protected]

SUNY Oneonta

If you have any comments or suggestions concerning this PowerPoint Presentation for South-Western Federal Taxation, please contact:

Dr. Donald R. Trippeer, CPA [email protected]

SUNY Oneonta