[Tux]

Corp AMT – always exempt in year 1 of the corporation

Year 2 – exempt from AMT if year 1 income is < $5 mill

Year 3 – Which rule is correct?

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Note: this is not from a MCQ. I’m just trying to understand the rule.

a) exempt from AMT in year 3 if average income from year 1 & 2 is < $5 mill ?

OR

b) exempt from AMT in year 3 if average income from year 1 & 2 is < $7.5 mill ?

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

[Tux]

I found it.

Answer to my previous question above is b.

Here's the source:

https://www.aicpa.org/publications/taxadviser/2014/may/pages/case_study_may2014.aspx

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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