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Quick question on AMT exemptions amounts for REG:

1. Do I need to memorize these?

2. Should I memorize the 2010 amounts or the 2011 amounts that Becker posted online?

Thanks!

[Anonymous]

I am using Roger to study and it says in that section that “The CPA exam has tested the calculation of the exemption for corporate taxpayers but has so far avoided the computation for individuals”…

Not sure if this helps any, but I remembered reading this the other night and thought I would pass it along.

[Anonymous]

I was practicing a AMT sim in the 2010 Wiley review. The exemption amounts are different from year to year and the tax rates are different depending on the taxable income. I was using a blank 2010 Form 6251 to answer the question and my answer didn't match the Wiley one because of the changes in exemption amounts. How are we supposed to know those unless they are given to us? The real tax forms provide the amounts so I don't think we should have to know them.

If the AMTI is over 150,000, then we have to apply the formula for the exemption. The form reads “see page 8 of the instructions”. Then we have to figure out the rate to apply (i.e., if line 30 is 175,000 or less, (87,500 or less if MFS), multiply line 30 by 26%. Otherwise, multiply line 30 by 28% and subtract $3,500 if MFJ – really?). It is confusing.

Thank goodness for tax software. I am going to learn the addbacks and preferences as well as the formula just in case.

As for 2010 vs. 2011, I have no idea??

[Anonymous]

I agree with 4my3boys. They will probably test you on Corporate AMT, not Individuals.

For Corporations, the AMT exemption is limited to $40,000 MAX.

To Calculate your exemption….

$40,000 – [.25 x (AMTI – 150,000)]

Thus, if AMTI is $310,000 or higher, your exemption is 0.

[Anonymous]

Thanks. I think you are right.

I'm just freaking out. UGH!!

[Anonymous]

@Allyson- You are not alone. I'm freaking out myself. I think I'm going to have a nervous breakdown. My exam is in two weeks, I feel like I've overstudied, my brain is fried, and I still do not feel prepared. We are in this together. This is going to be a painful and stressful two weeks for me.

[yankeeaccountant]

Hey guys,

I totally understand freaking out. Especially from reading the threads on this exam. I just took REG last week. I wlll say two things: first of all since this is not your first exam, you are accustomed to the whole process–at least you have that in your back pocket. Can you imagine having REG being your first exam?UGH!!!

Secondly, I will say, that it would be smart to know AMT for individuals as well as Corp.

Lastly, watch your time. This exam is so crucial on time. You will need to budget 1.5 hours for sims, IMO.

You guys have got this…..keep the faith.

[Anonymous]

I'm not sure how they are going to ask AMT exemptions for Individuals since it keeps changing. Even Yaeger said that they rarely test you on things that are constantly changing every year. Ugh!

[Author]

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