[isyed]

As much as I try to wrap my head around it, I can’t seem to grasp the entire concept of the AMT, especially for individuals.

If we are to take taxable income and pretty-much add back a lot of items which were otherwise deductions under regular tax, and then apply the AMT exemption ($47,450 – 25% AMTi for 2011) then wouldn’t a lot of people be subject to this tax? WHat would the purpose of regular tax tables above this figure even be if AMT is to be paid if it’s higher than regular tax.

Please shed some light for me on this, my REG exam is Thursday and this is pretty much the last major topic I am confused about.

Thank you

Feb 2012: FAR - 78
Nov 2012: REG - 90
DEC 2012: BEC - ?? Dec 7th
XXX 2013: AUD - ??

Using Becker's Self-Study 2011