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Unformatted text preview: They have enough foreign income from the mutual fund to claim the full $400 as a foreign tax credit. Their tax bracket is 25 percent and the itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A? Why? 22. Please list two common deductions which are allowed for regular tax purposes but are not deductible for alternative minimum tax (AMT) purposes. The standard deduction is allowed for regular tax but is not allowed for AMT Stated income tax refunds are not considered income for AMT since the state income tax deduction is not allowed for AMT Gain of asset sales such as rental real estate Personal and dependency exemptions are not allowed as deductions for AMT...
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- Spring '10
- Income tax deduction, middle income individuals, AMT •Stated income