6b - AMT - IndividualIncomeTax OnlineLectureSeries...

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Alternative Minimum Tax… Individual Income Tax Online Lecture Series Presented by Akore Berliner, CPA
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The Alternative Minimum Tax separate  tax system which runs  parallel  to the  regular income tax system Taxpayers pay the  Higher  of:  Regular Tax  or   AMT
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AMT formula Taxable income ±  Adjustments + Preferences Alternative Minimum Taxable Income –  Exemption AMT base × AMT rate(s) Tentative minimum tax – Foreign tax credit   –  Regular tax        Equals AMT
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Adjustments….
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Adjustments:  Timing  adjustments Temporary  difference between taxable income and  AMTI Eventually reverse Positive adjustments will be offset by negative  adjustments in the future, and vice versa Example – Various depreciation methods (SL vs DDB) Permanent  adjustments Do not relate to timing Permanent  difference between taxable income and  AMTI e.g., Itemized deductions
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Adjustments:  Examples Itemized deductions  not allowed  for AMT: Taxes  (major AMT trigger) Miscellaneous itemized deductions subject to the  2% AGI limit Other adjustments AMT does not  allow the standard deduction and  personal and dependency exemptions
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Examples Itemized deductions  allowed  for AMT 
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This note was uploaded on 02/01/2012 for the course ACC 2546 taught by Professor Dean during the Summer '10 term at San Diego State.

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6b - AMT - IndividualIncomeTax OnlineLectureSeries...

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