[mastrocl]

I am not sure what it is about the way Becker is presenting AMT, but my brain does not seem to want to process and understand the information the way it is presented. I understand why we have AMT, and that it is in addition to the regular tax if greater, it is more about how the calculation works that I am struggling with.

Does anyone have anything from another review, or an easier way to explain it? How do you know if something is an add or a subtract (other than the preferences)?

FAR - 76
AUD - 97
BEC - 91
REG - FEB-16

[Anonymous]

Reconciling AMT and RTI [Regular Tax Income] is like an IRS-FS and Bank-Book reconciliation.

When the book takes higher depreciation costs than what RTI is supposed to deduct, AMT screams and says, add it back to your income. In other cases, RTI takes lower depreciation costs per AMT, then the book has to be adjusted and deduct these depreciation from RTI. Same thing applies with installment sales, contracts, and many other adjustments.

There are several items that AMT and RTI agree about. We ignore them in reconciling the two:
7 [CCHHTTS]
C – Charitable Contributions
C – Casualty Loss
H – ½ of the Self-Employment Tax
H – Home mortgage interest for qualified dwelling
T – Traditional IRA Contributions
T – 10% AGI Medical Expense
S – S-179 Expense

[NotAnother74]

Just know the basics. Things like tax exempt interest, state taxes etc. are added back. I honestly never had anything beyond knowing what AMT prefs are. AMT is a rabbit hole and honestly it's not a big part of the exam in my experience.

F AR - 76
B EC - 82
A UD - 77 (lost credit)/Retake 2/25
R EG - 80

[Claudia408]

i think AMT and M-1 recons are great SIM questions so I would be paranoid that shows up, then you would need to know it pretty well.

BEC - 75 (3x)
AUD - 78 (3x)
REG - 67, 66, Aug 1
FAR - 54, Sept 8

[Author]

Replies