Individual Taxation - AMT Flashcards

1
Q

T/F

State Income Taxes are itemized deductions that are deductible when computing AMT for individuals

A

FALSE

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2
Q

T/F

Home Equity Mortgage Interest when the loan proceeds were used to purchase an auto are itemized deductions that are deductible when computing AMT for individuals

A

FALSE

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3
Q

T/F

Unreimbusred employee expenses in excess of 2% of AGI are itemized deductions that are deductible when computing AMT for individuals

A

FALSE

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4
Q

T/F

Gambling Losses are itemized deductions that are deductible when computing AMT for individuals

A

TRUE

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5
Q

How do you treat a personal exemption when computing AMT?

A

A personal exemption is an adjustment - it is deductible in computing regular taxable income but is not deductible in computing AMTI

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6
Q

How do you treat an itemized deduction for state taxes when computing AMT?

A

The itemized deduction for state taxes is an adjustment - it is deductible in computing regular taxable income but is not deductible in computing AMTI

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7
Q

How do you treat Tax-Exempt Interest from Private Activity Bonds issued in 2008 when computing AMT?

A

This is a tax preference - it must be added to regular taxable income in arriving at AMTI. Note that tax-exempt interest on private activity bonds issued in 2009 and 2010 are not tax preference items.

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8
Q

These are added or subtracted from regular taxable income to determine the “taxable income after AMT adjustments.”

A

Tax Adjustments

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9
Q

These items are added to get your AMTI.

A

Tax Preferences

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10
Q

T/F

Standard deductions/personal exemptions are allowable deductions under AMT

A

FALSE

These are tax adjustments

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11
Q

T/F

Mortgage interest is an allowable deductions under AMT as long as the mortgage loan is used to acquire a residence

A

TRUE

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12
Q

T/F

Taxes are an allowable deductions under AMT

A

FALSE

No AMT deduction is allowed for state, local, and foreign income taxes

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13
Q

T/F

Medical Expenses are not an allowable deductions under AMT

A

TRUE

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14
Q

T/F

Investment interest is not allowable deductions under AMT

A

TRUE

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15
Q

T/F

MACRS depreciation is not an allowable deductions under AMT

A

TRUE

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16
Q

T/F

Incentive Stock Options are an allowable deductions under AMT

A

FALSE

17
Q

T/F

Mining exploration and development costs are an allowable deductions under AMT

A

FALSE

18
Q

T/F

Research & experimental procedures are an allowable deductions under AMT

A

FALSE

19
Q

T/F

No AMT deduction is allowed for real and personal property taxes

A

TRUE

20
Q

T/F

No AMT deduction is allowed for miscellaneous itemized deductions subject to the 2% of AGI floor

A

TRUE

21
Q

T/F

An individuals AMT adjustments include net long-term capital gain in excess of net short-term capital loss

A

FALSE

22
Q

T/F

An individual’s AMT adjustments include home equity interest expenses where loan proceeds were not used to buy, build, or improve the home

A

TRUE

23
Q

The credit for prior year AMT liability may be carried _______

A

Forward Indefinitely

24
Q

The AMT is computed as ______

A

The excess of the tentative AMT over the regular tax