[Anonymous]

I’m confused on what the difference is between a positive and negative adjustment and a preference item is. I understand the idea of adding back the items but can’t distinguish between what is an adjustment and what is a preference item.

[Kenada]

Hello :-

Jeff has an old youtube video that explains this very simply – Think 1/3rd through the video

and try this too from Jeff on AMT

Or from Yagear

Also I have seen this mnemonic that has helped some folks too:-

PANIC TIMME (FOR AMT)

P- PASSIVE ACTIVITY LOSS

A – ACCELERATED DEPRECIATION

N – NET OPERATING LOSS OF INDIVIDUALS

I – INSTALLMENT INCOME OF DEALER

C – CONTRACTS (PERCENTAGE VERSUS COMPLETED CONTRACT)

T – TAX DEDUCTIONS

I – INTEREST DEDUCTIONS ON SOME HOME EQUITY LOANS

M – MEDICAL DEDUCTIONS (THAT EXCEED 10 PERCENT AGI)

M – MISC DEDUCTIONS

E – EXEMPTIONS AND STANDARD DEDUCTION

FAR 05/27/14; 786/110 - Done !

[Kenada]

Hello :-

Jeff has an old youtube video that explains this very simply – Think 1/3rd through the video

and try this too from Jeff on AMT

Or from Yagear

Also I have seen this mnemonic that has helped some folks too:-

PANIC TIMME (FOR AMT)

P- PASSIVE ACTIVITY LOSS

A – ACCELERATED DEPRECIATION

N – NET OPERATING LOSS OF INDIVIDUALS

I – INSTALLMENT INCOME OF DEALER

C – CONTRACTS (PERCENTAGE VERSUS COMPLETED CONTRACT)

T – TAX DEDUCTIONS

I – INTEREST DEDUCTIONS ON SOME HOME EQUITY LOANS

M – MEDICAL DEDUCTIONS (THAT EXCEED 10 PERCENT AGI)

M – MISC DEDUCTIONS

E – EXEMPTIONS AND STANDARD DEDUCTION

FAR 05/27/14; 786/110 - Done !

[Author]

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