[sooner2k1]

I’m using Becker and the videos directly say that charitable contributions are not an ad-back for AMT, but there is a multiple choice question where it asked what are the itemized deductions “for” alternative minimum tax and it includes charitable contributions (cash) in the list of choices and in the answer.

I understood the pnemonic “PANIC TIMME” to be the go-to for AMT, with “TIMME” being the adjustments for (ad-backs):

Taxes, Interest, Medical Expenses, Misc Deductions 2% floor, and Exemptions.

I can’t figure out where charitable contributions fit in, and I don’t understand at all why the Becker exam includes charitable in the answer for the total AMT itemized deductions.

Can anybody help me out?

[sarita]

I think the way Becker presents it is confusing. Charitable contributions is a deduction allowed in AMT. Since normal tax law also allows for a deductions for charitable contributions, there are no adjustments required when transferring taxable income to AMT income. So it's technically an itemized deduction, but not an adjustment from regular taxable income.

Hope that makes sense and I'm getting that right..

FAR 7/3/13 - 82
BEC 8/21/13 - 82
AUD 10/2/13 - 92
REG 12/3/13 - 88

DONE!!!! CA Candidate
Beat the 12/31/13 clock!

[sarita]

I think the way Becker presents it is confusing. Charitable contributions is a deduction allowed in AMT. Since normal tax law also allows for a deductions for charitable contributions, there are no adjustments required when transferring taxable income to AMT income. So it's technically an itemized deduction, but not an adjustment from regular taxable income.

Hope that makes sense and I'm getting that right..

FAR 7/3/13 - 82
BEC 8/21/13 - 82
AUD 10/2/13 - 92
REG 12/3/13 - 88

DONE!!!! CA Candidate
Beat the 12/31/13 clock!

[Author]

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