[Anonymous]

Hi,

Material: Becker – Reg 2013

I’m confused with the AMT, chapter 2, page 52. I did understand the PANIC TIMME thing but when I jump to the following questions (CPA-05537, CPA-07183, CPA-02015), I won’t be able to apply the PANIC TIMME!

For example, in question CPA-05537 – the answer considered the chartable contributions, although Becker instructor mentioned that charity is not added back for AMT.

In question CPA-07183, How come the answer considered medical expenses in excess of 7.5% not 10%? Although PANIC TIMME mentioned its 10%.

Last, question CPA-02015 – PANIC TIMME mentioned that Miscellaneous deductions are NOT allowed, but the question considered the Miscellaneous deductions in the answer!

I’m afraid that my understanding is totally wrong! Which is almost the case.

Appreciate if someone can support – Thank you.

[rolltide88]

I think u got things confused. I haven't seen the questions but the major point is if the person itemized his deductions already or not. If the person itmemized those deductions, then u add back the miscellaneous and the difference between the 7.5 and 10% that he already itemized. Charitable contributions are not added back, but he must not have itemized it already and they must be used to calculate the taxable income. So just make sure what the question is asking

I hope that helps

FAR- 78 (Nov)
AUD- 90 (Jan)
BEC- 81 (Feb)
REG- 89 (May)

[rolltide88]

I think u got things confused. I haven't seen the questions but the major point is if the person itemized his deductions already or not. If the person itmemized those deductions, then u add back the miscellaneous and the difference between the 7.5 and 10% that he already itemized. Charitable contributions are not added back, but he must not have itemized it already and they must be used to calculate the taxable income. So just make sure what the question is asking

I hope that helps

FAR- 78 (Nov)
AUD- 90 (Jan)
BEC- 81 (Feb)
REG- 89 (May)

[Anonymous]

I got it – thanks a lot 🙂

[Author]

Replies