[GSU-CPA]

How important is it for me to know this?

I have the formula and i know how to get to it but i dont know why you would use it over doing taxes regularly. In the comments i made from watching Yeager lectures i made few remamrs that you would use this if you need to estimate taxes but i dont see this written in the book.

I also tried to google it and it wasnt much help.

REG-77
BEC -Waiting on score May 5th
AUD - May 30
FAR - Q3 depending on if i pass above two in Q2

[gorbuha]

I am going over it right now. It is not that hard. Basically you have to calculate your taxable income and then calculate your alternative minimum tax income and compare the two. If you AMTI > regular taxable income then you pay AMT, which can be carried over indefinitely but can only offset future regular tax due, not future AMT tax due. Just learn how regular taxable income is adjusted to arrive at AMTI. There are several adjustments (+/-) and preferred items (+).

FAR - 89
AUD - 84
BEC - 84
REG - 49, 86
ETHICS - 96........ DONE!!!

[gorbuha]

And good luck!

FAR - 89
AUD - 84
BEC - 84
REG - 49, 86
ETHICS - 96........ DONE!!!

[Kimboroni]

I was struggling with the “why” as well. Thanks for clearing that up!

AUD 84 (1/9/14-Wiley books/TB + free materials)
FAR 83 (5/21/14-the above + NINJA 10 Pt Combo Lite)
REG 84 (7/9/14-Wiley books/TB + NINJA Audio/FC/Notes)
BEC 76 (10/5/14-Wiley books/TB + NINJA Audio/FC)

Disclaimer: My ninja avatar is not meant to imply that I have any affiliation with this site other than being a forum member. That's a pic of a T-shirt that my daughter gave me for my birthday. 🙂

[Anonymous]

I would not skip not knowing AMT. It has been known to come as a SIM in REG so not to be taken lightly as you may be that person that gets it. I know I did and it was Ugly.

So the first step help you get to what your taxable income is. But the Govt wants more money from you…. so in order to Squeeze you, they then have calculate what your taxable income could be if you did the AMT way…

So all it is – a way for the Govt to Squeeze a little more money out from you 🙂

Jeff has a AMT video on you tube. Should check it out and it will help you better understand it .

Its not that hard but be weary that the way they test in the SIMs could make you second guess your self.

[jeff]

Here it is…I can't watch it though…haha…it's old!

[Anonymous]

As Roger explains, “it's the government's way of squeeeeeeeeeeeeezing every last penny out of you.”

[taxgeek83]

My understanding of AMT is that it was codified to ensure that higher-income taxpayers were paying at least something, rather than getting the benefit of a ton of deductions (ones lower-income individuals could not necessarily afford, such as the mortgage interest deduction) and paying little to no income tax.

Fast forward a few years, and without adjustments for inflation, a “high-income” taxpayer was all of a sudden a couple living paycheck to paycheck, so Congress kept having to patch it year after year. I think a permanent fix went in at the end of 2013 that ties AMT thresholds to inflation, but I'm not sure of the details.

I haven't studied it nor have I really worked with it, but the legislative history is interesting. In my tax geek opinion anyway…. 🙂

[gorbuha]

Holland vs. Spain – 5:1 !!!!!

FAR - 89
AUD - 84
BEC - 84
REG - 49, 86
ETHICS - 96........ DONE!!!

[scarecrow]

In the video one of the adjustments is to add back the 10% medical deduction. How is this affected by the new rate for 2014? I've been reading that the adjustment for the calculation of regular tax was increased from 7.5% to 10%, is the add back adjustment for AMTI increased as well to compensate for this?

317 CLUB

[jeff]

With medical at 10% now, ignore that part because there's no difference.

[scarecrow]

Thanks, Jeff.

317 CLUB

[jiaxuanclaire]

Hi Jeff,

With medical at 10% now, ignore that part because there's no difference.

For this question Medical expenses (before percentage limitations) $12,000

State income taxes 4,000

Real estate taxes 3,500

Qualified housing and residence mortgage interest 10,000

Home equity mortgage interest (used to consolidate personal debts) 4,500

Charitable contributions (cash) 5,000

What are Robert’s itemized deductions that are allowable for alternative minimum tax purposes?

Is it only 10000+5000 then?

BEC: (07/13) 79-->done
AUD: (08/13) 62, (03/14) 68, (11/14)--?
REG: (05/14) 74, (07/14) 72, (10/14) 79-->done
FAR: (08/14) 80-->done

[lude4life13]

Straight from Becker: “The objective of the corporate AMT, like that of the individual AMT, is to ensure that every corporation with substantial economic income pays at least some minimum amount of tax despite the use of exclusions, deductions, credits.”

There is no shortcut to getting the material. Read/practice/re-read. Your question is directly answered in this SINGLE sentence, which I am sure is in your material in some form as well.

[Anonymous]

Medical still stays at 7.5% of AGI if age 65 and older. So how much of the medical expenses do we add back for AMT?

[leglock]

If taxpayer is ovr 65 u will add back the spread betw 7.5 and 10 percent. If under 65 there will b no addback

[Author]

Replies