[mycpa]

I am having an issue understanding the adjustments and how they work. Is it possible to get a simulation question in this area or just couple of straight forward MCQ? Thanks.

FAR: 77

AUD: 81

BEC: 82

REG: 8/30/12

FAR: 77
AUD: 81
BEC: 82
REG: 78

[Anonymous]

Any topic is fair game for a simulation. Good Luck!

[mena je twa]

mycpa…

Are you inquiring about coporate or Individual AMT? Individual is easy… The feds are trying to disallow a lot of your Sch A itemized deductions and adding it back to your income. Think of all the freebies you are getting when you are filing your return…Personal exemption, add this back, standard deductions add this back, 10% on medical instead of 7.5%… And there are few more which i dont remember.

On the corporate side, just understand what Preferences are, once you know ttose and what the ACE adjustments are then the rest of it is all adjustments. Most of the time, the adjustments will be added but preferences are always a PLUS.

Can't tell you how they will tested but have some basic understanding.

Licensed CPA, Texas - 2012

[mycpa]

mena je twa… Thank you!! I was talking about Individual. Your explanation makes sound easy to me. I will be going back to it tonight. Thanks for your help.

FAR: 77
AUD: 81
BEC: 82
REG: 78

[LittleMoe]

For Individual, I think of it like it was explained in my tax textbook. For AMT, you take your regular taxable income and make adjustments for items that weren't actually “economic income.” Like the standard deduction, did you actally do anything to earn it? Nope, then add it back…we are going to use that to raise your AMTI and in turn the AMT you owe. And those personal/dependency exemptions, did you earn those? Nope, then add those suckers back in too so we can hit you with some more AMT. For some reason, that made it easier to understand for me.

AUD 4/12/12 79
FAR 5/29/12 76
REG 8/2/12 82
BEC 8/30/12 72 Retake 10/18/12 76!!! DONE!!!!
ExamMatrix, Wiley Books, NINJA notes and audio
LICENSED ALABAMA CPA 11/30/12

[Author]

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