Real Property=SL for both regular tax and AMT
Corporate exemption amount reduces the AMTI and has a max of $40K. The exemption amount is reduced by 25% of AMTI in excess of $150,000 and is completely phased out for corporations with AMTI of $310,000.
ACE adjustment can increase or decrease the AMTI. If the ACE is less than the AMTI, it may reduce the AMTI.
Personal Property=150% Declining Balance to get AMTI and regular taxable income
The alternative minimum tax is the excess of the tentative minimum tax over the regular tax liability. True
Only municipal bond interest from private activity bonds is added back and included in the calculation of AMTI before the ACE adjustment.
70% dividends-received deduction increases the adjusted current earnings (ACE) used in calculating the alternative minimum taxable income (AMTI). The 80% and 100% dividends-received deductions are allowed in the calculation of ACE and therefore do not increase ACE.
Municipal bond interest is a positive adjustment (i.e. included) in the calculation of adjusted current earnings (ACE) since it is included in the calculation of earnings and profits (E & P) and is excluded from pre-adjusted AMTI
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!!
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