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Exam 17: Business Tax Credits and the Alternative Minimum Tax

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Question 71

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How can interest on a private activity bond issued in 2013 result in both an AMT adjustment that decreases AMTI and an AMT preference that increases AMTI?

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The interest on a private activity bond ...

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Question 72

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AGI is used as the base for application of percentage limitations i.e., 20%, 30%, 50%) that apply to the charitable contribution deduction for regular income tax purposes.Modified AGI is used as the base for application of percentage limitations that apply to the charitable contribution deduction for AMT purposes.

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Question 73

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A U.S.taxpayer may take a current FTC equal to the greater of the FTC limit or the actual foreign taxes direct or indirect) paid or accrued.

The required adjustment for AMT purposes for pollution control facilities placed in service this year is equal to the difference between the amortization deduction allowed for regular income tax purposes and the depreciation deduction computed under ADS.

How can the positive AMT adjustment for research and experimental expenditures be avoided?

The sale of business property could result in an AMT adjustment.

Some or all) of the tax credit for rehabilitation expenditures will have to be recaptured if the rehabilitated property is disposed of prematurely or if it ceases to be qualifying property.

All taxpayers are eligible to take the basic research credit.

In calculating her taxable income, Rhonda, who is age 45, claims the following itemized deductions.

Which of the following would not cause an individual taxpayer's AMTI to increase in the current year?

Dale owns and operates Dale's Emporium as a sole proprietorship.On January 30, 2004, Dale's Emporium acquired a warehouse for $100,000.For regular income tax purposes in 2018, depreciation was deducted under MACRS using a 2.564% rate.Determine the AMT adjustment for depreciation and indicate whether it is positive or negative.

Durell's sole proprietorship builds residential housing.The business is eligible to use the completed contract method for regular income tax purposes.What can Durell do to minimize his AMT?