Alternative Minimum Tax - CPA Regulation (REG)
Card 1 of 24
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
Tap to reveal answer
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
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The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
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Which of the following is not an adjustment or preference to arrive at alternative minimum taxable income?
Which of the following is not an adjustment or preference to arrive at alternative minimum taxable income?
Tap to reveal answer
Adjustments and preferences to arrive at AMTI include many items, such as passive activity losses, accelerated depreciation, net operating loss of an individual taxpayer, state and local taxes, the standard deduction, and private activity bond interest income. Deductible contributions to IRAs are treated the same under AMTI as for taxable income.
Adjustments and preferences to arrive at AMTI include many items, such as passive activity losses, accelerated depreciation, net operating loss of an individual taxpayer, state and local taxes, the standard deduction, and private activity bond interest income. Deductible contributions to IRAs are treated the same under AMTI as for taxable income.
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The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
AMT paid can be claimed as a credit against other years if the tax was paid on items that increased AMT that year but will reverse in later years. The credit is carried forward indefinitely.
AMT paid can be claimed as a credit against other years if the tax was paid on items that increased AMT that year but will reverse in later years. The credit is carried forward indefinitely.
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Of the following is not an adjustment or preference to arrive at AMTI?
Of the following is not an adjustment or preference to arrive at AMTI?
Tap to reveal answer
Deductible contributions to individual retirement accounts are not an adjustment or preference in calculation a taxpayer’s AMTI. They are an adjustment in calculating adjusted gross income for regular tax purposes.
Deductible contributions to individual retirement accounts are not an adjustment or preference in calculation a taxpayer’s AMTI. They are an adjustment in calculating adjusted gross income for regular tax purposes.
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Of the following, which are allowable itemized deductions for computing AMT income?
Of the following, which are allowable itemized deductions for computing AMT income?
Tap to reveal answer
Both of these options are normal itemized deductions (Sch A) however not all itemized deductions are included in AMTI.
Both of these options are normal itemized deductions (Sch A) however not all itemized deductions are included in AMTI.
← Didn't Know|Knew It →
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
Tap to reveal answer
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
← Didn't Know|Knew It →
The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
← Didn't Know|Knew It →
Which of the following is not an adjustment or preference to arrive at alternative minimum taxable income?
Which of the following is not an adjustment or preference to arrive at alternative minimum taxable income?
Tap to reveal answer
Adjustments and preferences to arrive at AMTI include many items, such as passive activity losses, accelerated depreciation, net operating loss of an individual taxpayer, state and local taxes, the standard deduction, and private activity bond interest income. Deductible contributions to IRAs are treated the same under AMTI as for taxable income.
Adjustments and preferences to arrive at AMTI include many items, such as passive activity losses, accelerated depreciation, net operating loss of an individual taxpayer, state and local taxes, the standard deduction, and private activity bond interest income. Deductible contributions to IRAs are treated the same under AMTI as for taxable income.
← Didn't Know|Knew It →
The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
AMT paid can be claimed as a credit against other years if the tax was paid on items that increased AMT that year but will reverse in later years. The credit is carried forward indefinitely.
AMT paid can be claimed as a credit against other years if the tax was paid on items that increased AMT that year but will reverse in later years. The credit is carried forward indefinitely.
← Didn't Know|Knew It →
Of the following is not an adjustment or preference to arrive at AMTI?
Of the following is not an adjustment or preference to arrive at AMTI?
Tap to reveal answer
Deductible contributions to individual retirement accounts are not an adjustment or preference in calculation a taxpayer’s AMTI. They are an adjustment in calculating adjusted gross income for regular tax purposes.
Deductible contributions to individual retirement accounts are not an adjustment or preference in calculation a taxpayer’s AMTI. They are an adjustment in calculating adjusted gross income for regular tax purposes.
← Didn't Know|Knew It →
Of the following, which are allowable itemized deductions for computing AMT income?
Of the following, which are allowable itemized deductions for computing AMT income?
Tap to reveal answer
Both of these options are normal itemized deductions (Sch A) however not all itemized deductions are included in AMTI.
Both of these options are normal itemized deductions (Sch A) however not all itemized deductions are included in AMTI.
← Didn't Know|Knew It →
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
Tap to reveal answer
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
← Didn't Know|Knew It →
The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
← Didn't Know|Knew It →
Which of the following is not an adjustment or preference to arrive at alternative minimum taxable income?
Which of the following is not an adjustment or preference to arrive at alternative minimum taxable income?
Tap to reveal answer
Adjustments and preferences to arrive at AMTI include many items, such as passive activity losses, accelerated depreciation, net operating loss of an individual taxpayer, state and local taxes, the standard deduction, and private activity bond interest income. Deductible contributions to IRAs are treated the same under AMTI as for taxable income.
Adjustments and preferences to arrive at AMTI include many items, such as passive activity losses, accelerated depreciation, net operating loss of an individual taxpayer, state and local taxes, the standard deduction, and private activity bond interest income. Deductible contributions to IRAs are treated the same under AMTI as for taxable income.
← Didn't Know|Knew It →
The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
AMT paid can be claimed as a credit against other years if the tax was paid on items that increased AMT that year but will reverse in later years. The credit is carried forward indefinitely.
AMT paid can be claimed as a credit against other years if the tax was paid on items that increased AMT that year but will reverse in later years. The credit is carried forward indefinitely.
← Didn't Know|Knew It →
Of the following is not an adjustment or preference to arrive at AMTI?
Of the following is not an adjustment or preference to arrive at AMTI?
Tap to reveal answer
Deductible contributions to individual retirement accounts are not an adjustment or preference in calculation a taxpayer’s AMTI. They are an adjustment in calculating adjusted gross income for regular tax purposes.
Deductible contributions to individual retirement accounts are not an adjustment or preference in calculation a taxpayer’s AMTI. They are an adjustment in calculating adjusted gross income for regular tax purposes.
← Didn't Know|Knew It →
Of the following, which are allowable itemized deductions for computing AMT income?
Of the following, which are allowable itemized deductions for computing AMT income?
Tap to reveal answer
Both of these options are normal itemized deductions (Sch A) however not all itemized deductions are included in AMTI.
Both of these options are normal itemized deductions (Sch A) however not all itemized deductions are included in AMTI.
← Didn't Know|Knew It →
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
West is single, has no dependents, and does not itemize. West provides the following information regarding his current-year’s return:
- Long-term capital gain: $ 15,000
- Percentage depletion in excess of property’s adjusted basis: 9,000
- Dividends from publicly held companies: 10,000
What is the amount of West’s AMT tax preference items?
Tap to reveal answer
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
Among the options provided, only the percentage depletion in excess of a property’s adjusted basis is included as an AMT tax preference item.
← Didn't Know|Knew It →
The credit for prior year AMT liability may be carried:
The credit for prior year AMT liability may be carried:
Tap to reveal answer
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
Like capital losses for individuals, AMT credits may be carried forward indefinitely for individual taxpayers.
← Didn't Know|Knew It →