[SoCalCPA]

Does anyone have a good memory tool to remember what gets adjusted vs. what is only an adjustment to 1040, etc?

In addition, is it necessary to memorize the exemption amounts for AMT? Thanks for the tip/advice!

B - (4/2012)
A - (5/2012)
R - (1/2012) Done!
F - (10/2011) Done!

[gns121584]

PANIC TIMME (ADJUSTMENTS 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

AUD - PASSED - 84 -(11/21/11)
REG - PASSED - 83 -(1/17/12)
BEC - PASSED - 86 -(2/28/12)
FAR - PASSED - 84 -(5/14/12)
I AM DONE!!!!

[Anonymous]

Thanks for the mnemonic. This is one of the harder topics in REG. That will make it a lot easier in the event I get a question on this.

[gns121584]

@ CPAman, Sure thing =) AMT is definitely a difficult area for me too.

AUD - PASSED - 84 -(11/21/11)
REG - PASSED - 83 -(1/17/12)
BEC - PASSED - 86 -(2/28/12)
FAR - PASSED - 84 -(5/14/12)
I AM DONE!!!!

[jeff]

Should be (THAT **don't** EXCEED 10 PERCENT AGI)

I'm sure that's what you/they meant.

[gns121584]

Sorry about that Jeff, thanks for the correction =)

AUD - PASSED - 84 -(11/21/11)
REG - PASSED - 83 -(1/17/12)
BEC - PASSED - 86 -(2/28/12)
FAR - PASSED - 84 -(5/14/12)
I AM DONE!!!!

[PistolPete]

I can't seem to grasp this concept either.

Regarding the OP, Becker's Pass Key on this topic says that most CPA exam questions focus on differentiating between Adjustments and Preferences, calculating the exemption and the credits available to reduce AMT. So yes, you should know how to calculate the exemption.

FAR - 68, 79
AUD - 82
REG - 71, 71, 80
BEC - 76

CMA
Part 1: October 2013
Part 2: January 2014

[jdj017400]

Can someone clarify (via Becker) something for AMT:

Becker states that you should start with “Regular Taxable Income”, and then +/- Adjustments, + Preferences, and so on…

To me “Regular Taxable Income” is AGI – (Standard or Itemized) – Exemptions. However, on the AMT tax form (6251) it shows the starting point as “Line 41” from 1040.

Line 41 (1040) is Taxable Income before subtracting Exemptions…so is this technically the “Regular Taxable Income” Becker is referring to?

Essentially what I'm asking is there a difference in “Taxable Income” vs. “Regular Taxable Income”? It seems to me that the starting point for AMT should in fact be Taxable Income “BEFORE” subtracting out any Exemptions.

Thanks in advance!

BEC - 80 (11/30/2010), Lost Credit - Retake 11/30/2012, 80 (FINISHED!)
AUD - 71 (05/31/2011), 79 (08/28/2011)
REG - 70 (11/30/2011), 87 (02/09/2012)
FAR - 61 (5/31/2012), 80 (08/31/2012)

[Anonymous]

I actually have the same question, too. Could anyone help to clarify:

Adjustment: “(Recalculate) installment income of a dealer”

**When would it increase or decrease the AMTI?

**Perhaps, could anyone share a list of “Adjustments” that will decrease AMTI? (looks like most of them will increase the taxable income)

And I would like to share the info that I recently got, for the 2012 update:

2012 AMT Exemption for individual is $48,450; Joint is $74,450.

2012 Corporation Exemption is still $40,000

[jdj017400]

Are those 2012 updates the “2012” Becker update for correct 2011 amounts; or are those the actual amounts for 2012?

2012 amounts shouldn't be tested in this window though (I think). From what I have heard and read (via AICPA website), only material in effect 6 months before the beginning of the current window is eligible.

BEC - 80 (11/30/2010), Lost Credit - Retake 11/30/2012, 80 (FINISHED!)
AUD - 71 (05/31/2011), 79 (08/28/2011)
REG - 70 (11/30/2011), 87 (02/09/2012)
FAR - 61 (5/31/2012), 80 (08/31/2012)

[Anonymous]

I thought Becker Self Study made AMT adjustments way more confusing and complicated than it needed to be.

Funny because I thought the Becker Final Review explained the AMT adjustments much more clearly.

[Tux]

The immediate post above says the Becker Final Review explained AMT more clearly than the regular Becker program.

Anyone taking Becker Final Review for REG and willing to share tips on learning AMT ???

FAR - 86 - 2/27/14
AUD - 75 - 5/29/14
BEC - 80 - 8/31/14
REG - 89 - 2/27/15
Praise Jesus! I'm done!!

Study resources:
Becker
Wiley test bank

[Author]

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