C12-Chp-03-3-Illustrations-CORP-AMT

# C12-Chp-03-3-Illustrations-CORP-AMT - Tab Short Example...

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Tab: Short Example File: 8f5c1c47758139f1679123c81b7087887432009f.xls Page: Page 1 Alternative Minimum Tax Worksheet Tax Return Information GAAP 1120 AMTI ACE 1 Sales \$500,000 \$500,000 \$500,000 500,000 2 Cost of Sales (200,000) (200,000) (200,000) (200,000) 3 Gross Margin 300,000 300,000 300,000 300,000 4 Expenses (100,000) (100,000) (100,000) (100,000) 5 Operating income 200,000 200,000 200,000 200,000 6 Private activity bond interest 250,000 250,000 250,000 7 Net income / Taxable Income / AMTI / ACE \$450,000 \$200,000 \$450,000 \$450,000 8 Difference (AMTI & ACE) 9 Regular Tax Computation 10 First \$50,000 \$50,000 15% 7,500 11 Next \$25,000 25,000 25% 6,250 12 Next \$25,000 25,000 34% 8,500 13 Excess 100,000 39% 39,000 14 Excess 34% 15 Regular Federal Income Tax \$61,250 16 Compute Alternative Minimum Tax 17 Regular taxable income before NOL deduction \$200,000 18 Plus/minus: AMT adjustments (except ACE adjust.) (Examples??) 19 Plus: Tax preferences (Examples??) 20 Private activity bond interest 250,000 21 Equals: AMTI before AMT NOL deduction & ACE adjustment 450,000 22 Plus/minus: ACE adjustment (75% of ACE minus AMTI) 23 Equals: AMTI before AMT NOL deduction 450,000 24 25 Equals: Alternative minimum taxable income (AMTI) 450,000 26 Minus: Exemption (See Computation Below) 0 27 Equals: Tentative alternative minimum tax base 450,000 28 Times: 20% rate 20% 29

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