[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

[leglock]

also note that you add back taxes, except federal obviously, however property taxes on rental property are not an add back, as you did not take these as an itemized deduction, instead they were part of rental income.

[wjun15]

“if your 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.”

What does this mean? So if your AMTI is 20K and your taxable in come is 15K. you pay the 20K total. what do you mean by carry forward? what is carried forward? can you provide examples in numbers explaining that last sentence?

Thanks!

[leglock]

wjun,

Probably just a typo in the scenario you provided, but I think you want it to be assumed that tentative minimum tax (not AMTI) is 20k.

If tentative Minimum tax is 20k and regular tax is 15k, then you will pay 20k in tax, but only 5k is considered alternative minimum tax, because by definition alternative minimum tax is the amount of tentative tax in EXCESS of regular tax.

AMT paid in a given year may be carried forward as a credit to subsequent taxable years to reduce regular tax; however, you may only use this offset in a year in which no AMT applies.

So if you had 5k in AMT this year as in your example, and next year there is only regular tax and no AMT, then you can use the 5k that you carried forward from last year to offset some of your regular tax liability for this year. However, if next year, there is AMT (tentative minimum tax is greater than regular income tax), then you may not use any of the 5k carry forward to offset your taxes due this year. You will have to wait until you have a year when there is no AMT to use your 5k carryforward.

[wjun15]

hey leglock, do you mind giving me your email? I dont see any function where you can send msg's. My test is coming up on Sunday and Ive been trying to find a tutor but becker doesnt provide any. haha. if you dont want to its fine..or maybe you can delete your email (edit function) once i email you?

[thechapman]

That video Jeff posted has helped me answer basically any AMT question from Becker. There aren't too many on Becker, but it is still very helpful and simplified.

Passed - 2014

[StriveNow56]

Hey Jeff –

Should one know how to determine the increase/decrease from NOL's and PAL's? Should would know the AMT-specific calculations?

[Anonymous]

i feel like becker explains AMT really poorly. i was just about to start a thread on AMT but i found this one. can anyone who used becker please explain the section about itemized deductions with AMT (page R2-50). Every time i have a becker question related to itemzied deductions and AMT, i get realy confused

[Anonymous]

Robert had current-year adjusted gross income of $100,000 and potential itemized deductions as follows:

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 for alternative minimum tax?

this question makes no sense to me. why would medical expenses be included isnt it a addback to AMT?

[Author]

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