[Anonymous]

Indefinitely

5 [SPACE]

S Corporation – Any losses disallowed may be carried forward indefinitely and will be deductible as the shareholder’s basis is increased.

Passive Activity Loss [PAL] (in excess of passive activity income)–Forward indefinitely

AMT–Forward indefinitely against future “regular” income tax

Capital Loss – Individual Only – (after $3K against ordinary income and $50K against capital gains –forward indefinitely (ST or LT)

Excess investment expense over income–Forward indefinitely

0/5 – Charitable Contributions (over 10% AGI Limit)–Forward 5 years

1/10 – Carryover of Excess (Disallowed foreign tax credit)

1/20 – General Business Credit =>Unused Credit Carryover => Carry Back 1 Year; Carry Forward 20 Years

2/20 – C Corporations’ NOL–2/20;

3/5 – (1) Corporate Capital Loss–3/5 (all ST); (2) Net Long-Term Capital Loss

[Anonymous]

Some of the examples below are common adjustments under AMT. They could either increase or decrease AMT. Can someone tell me what is plus and minus to the RTI? Thanks.

P-PAL

A-Accelerate Depreciation

N-NOL of Individual TP

I-Installment income of a dealer

C-Contracts – POC vs. CCM

p.s.

I'm on PANIC mode alright. I just want to know what to add and deduct this time, 3 nights before test date, yay!

[needhelpnow]

Are you talking Corporate AMT?

RTI

+- Interest Income on municipal bonds known as PRIVATE BOND ACTIVITY

+- Installment Sales of Inventory (Difference b/w accrual and installment method)

+- Long term contact income (Percentage of Completion method) Eg: For construction

+- Excess Depreciation on personal over 150% declining balance. I am assuming Personal is 7 years and 200% DDL, therefore 50% is excess of 150%. So 50% Excess depreciation on personal

Does that help?

[needhelpnow]

Corporate Income Tax Return (1120)

Gross Income

-Ordinary Deductions

__________

Income before Special Deduction

-Charitable Contributions

-Dividends Received Deductions

_________

Taxable Income

xTax Percentage

_________

Gross Tax liability

-Foreign Tax Credit

_________

Net Regular Tax Liab

+PHC

+AET

+AMT

_________

Total Tax Liab

[Anonymous]

I think, I am asking both corporate and individual. I am just reviewing my notes, no time to go back the whole lecture of AMT. Becker gave the same concepts (+/-). When do I add and deduct? I just need to create straight formulas to remember during these last hours of review. Thanks very much!

[Mamabear]

If it was deducted to get to your regular taxable income, but it doesn't count towards AMT then you add it back and visa versa. It's hard to do a straight formula for AMT. You just have to understand how it played a part in computing regular taxable income to know whether to add it or deduct it to calculate AMT.

CPA Exam - Finally DONE (November 2014)
BEC (08/10/13) 80
AUD (08/24/13) 65 (11/13/13) 85
FAR (04/12/14) 81
REG (07/19/14) 69 (11/29/14) 87!!

[Anonymous]

Fair enough, Mamabear. Thanks, that's all I need to remember then. Good luck to all of us!

[Author]

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