[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

[Skrier]

@Qlad…I feel the same way. I think I am comfortable with the concept, but would like more practice questions to be sure.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@Qlad…I feel the same way. I think I am comfortable with the concept, but would like more practice questions to be sure.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[vikavin]

Ok people i am studying for the REG section retake, even after reading my textbook for a third time i still have the same question:

is AMT in addition to regular tax or instead regular tax?

Exact words from my CPAexcel text are: The AMT is called an alternative tax because it is imposed in lieu of the regular tax when the AMT's “tentative” tax exceeds the regular tax.

So to my understanding the book is saying that AMT is imposed in lieu = instead. I tried to google it and all of the searches on internet say that it is not imposed instead but in addition to a regular tax. So now i am totally confused about it (plus english is my second language which makes it even more confusing). Can someone explain to me if it is impose instead or in addition to a regular tax?

I do understand the rule that if AMT is bigger then taxpayer has to pay it, but this instead or in addition is what getting me confused.

AUD-75 YAY!!!!
REG-81
FAR- 73; 76-Feb.2014( Praise God!!!!!!!)
BEC- 73,65,78 and I am DONE!!!!!

[vikavin]

Ok people i am studying for the REG section retake, even after reading my textbook for a third time i still have the same question:

is AMT in addition to regular tax or instead regular tax?

Exact words from my CPAexcel text are: The AMT is called an alternative tax because it is imposed in lieu of the regular tax when the AMT's “tentative” tax exceeds the regular tax.

So to my understanding the book is saying that AMT is imposed in lieu = instead. I tried to google it and all of the searches on internet say that it is not imposed instead but in addition to a regular tax. So now i am totally confused about it (plus english is my second language which makes it even more confusing). Can someone explain to me if it is impose instead or in addition to a regular tax?

I do understand the rule that if AMT is bigger then taxpayer has to pay it, but this instead or in addition is what getting me confused.

AUD-75 YAY!!!!
REG-81
FAR- 73; 76-Feb.2014( Praise God!!!!!!!)
BEC- 73,65,78 and I am DONE!!!!!

[Kenada]

Hiya AMT – questions on what Corporations or Individuals ?

FAR 05/27/14; 786/110 - Done !

[Kenada]

Hiya AMT – questions on what Corporations or Individuals ?

FAR 05/27/14; 786/110 - Done !

[Skrier]

@vikavin…to make it a little easier, if the calculated AMT amount exceeds the regular tax amount, then you would pay the regular tax plus the excess AMT over regular tax. So in all reality you are only paying the full AMT amount. To make it easier, you pay the greater of Regular tax or AMT. Hope this helps.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

@vikavin…to make it a little easier, if the calculated AMT amount exceeds the regular tax amount, then you would pay the regular tax plus the excess AMT over regular tax. So in all reality you are only paying the full AMT amount. To make it easier, you pay the greater of Regular tax or AMT. Hope this helps.

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Kenada]

AMT is the calculation where the IRS has a mechanism created to ensure that high-income individuals, corporations, trusts, and estates pay at least some minimum amount of tax, regardless of deductions, credits or exemptions.

In my understand you will be Regular Tax plus the AMT balance (Difference between Tentative Minimum Tax that is derived using from the Alternative method less The Regular Tax Due you calculate on your 1040.

AMT = Tentative Minimum Tax – Regular Tax.

FAR 05/27/14; 786/110 - Done !

[Kenada]

AMT is the calculation where the IRS has a mechanism created to ensure that high-income individuals, corporations, trusts, and estates pay at least some minimum amount of tax, regardless of deductions, credits or exemptions.

In my understand you will be Regular Tax plus the AMT balance (Difference between Tentative Minimum Tax that is derived using from the Alternative method less The Regular Tax Due you calculate on your 1040.

AMT = Tentative Minimum Tax – Regular Tax.

FAR 05/27/14; 786/110 - Done !

[vikavin]

I guess to my understanding you can think about AMT as an addition to the regular tax and at the same time you can think about it as a substitute of the regular tax, whichever is greater. The reason why i stocked at this question is because i got some of the questions with this concept on my first take of REG, and i am just trying to make sure i know the answer this time.

AUD-75 YAY!!!!
REG-81
FAR- 73; 76-Feb.2014( Praise God!!!!!!!)
BEC- 73,65,78 and I am DONE!!!!!

[vikavin]

I guess to my understanding you can think about AMT as an addition to the regular tax and at the same time you can think about it as a substitute of the regular tax, whichever is greater. The reason why i stocked at this question is because i got some of the questions with this concept on my first take of REG, and i am just trying to make sure i know the answer this time.

AUD-75 YAY!!!!
REG-81
FAR- 73; 76-Feb.2014( Praise God!!!!!!!)
BEC- 73,65,78 and I am DONE!!!!!

[Skrier]

Yes you can look at it that way. It will not be regular + AMT. You just need to remember alternate if bigger. Good Luck!!

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Skrier]

Yes you can look at it that way. It will not be regular + AMT. You just need to remember alternate if bigger. Good Luck!!

AUD- 84
FAR- 75
REG- 78...I am DONE!!!
BEC- 79

[Qlad]

@ vikavin….I wud say remember AMT as “Additional Maximum tax” instead of “Alternative minimum tax” ,….lol bcoz there is nothing alternative and definitely not minimum…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Author]

Replies