TF - I:14-1. The present AMT applies to individuals,...

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I:14-1. The present AMT applies to individuals, corporations, estates, and trusts. T, p. I:14-2. I:14-2. The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability. T , p. I:14-2. I:14-3. For purposes of the AMT, the standard deduction, but not the personal and dependency exemptions, is allowed. F , p. I:14-3. Solution: Neither is allowed. I:14-4. An example of an AMT tax preference is the excess of accelerated depreciation over the straight- line depreciation amount for real property placed in service before 1987. T , p. I:14-4. I:14-5. Municipal bond interest income is always classified as a tax preference. F , p. I:14-4. Solution: While exempt from federal tax, municipal bond interest is not a preference item. I:14-6. Casualty and theft losses in excess of 10% of AGI are deductible for AMT purposes. T , p. I:14-4. I:14-7 Medical expenses in excess of 7.5% of AGI are deductible when computing AMT. F , p. I:14-4. Solution: Medical expenses in excess of 10% of AGI are deductible. I:14-8. For purposes of the AMT, only the foreign tax credit and refundable personal credits are allowed to reduce the tentative minimum tax. F , p. I:14-6. Solution: The foreign tax credit and nonrefundable personal credits reduce the tentative minimum tax. I:14-9. If an individual is classified as an employee, the employer is required to withhold the employee's share of the FICA tax and to provide a matching amount. T , p. I:14-8. I:TB14-1 I:14-10. Under the tax laws, there is no difference between an employee and an independent contractor.
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This note was uploaded on 02/25/2010 for the course ACCT 5330 taught by Professor Bob during the Spring '10 term at University of Arizona- Tucson.

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TF - I:14-1. The present AMT applies to individuals,...

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