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Used for individual taxpayer AMT adjustments and preferences
- USED FOR INDIVIDUAL TAXPAYER AMT ADJUSTMENTS AND PREFERENCES
- P = Passive Activity Losses (recalculate)
- A = Accelerated Depreciation
- N = Net Operating Loss of the individual taxpayer
- I = Installment Sales for dealers
- C = Contracts must use % of completion
- ============
- T = Taxes, can't use AMT credit, tax deductions reduced by taxable refunds (if refunds meet the tax benefit rule)
- I = Interest on home equity loan not used on the home
- M = Miscellaneous deductions subject to 2% floor
- E = Exemptions, no personal or standard deductions allowed
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Used for individual taxpayer AMT credits that can reduce the AMT liability
- THESE CREDITS ARE NOT REFUNDABLE CREDITS
- A-C3
- A = Adoption Credit
- C = Child and Dependent Care Credit
- C = Child Tax Credit
- C = Contributions to Retirement Plan Credit
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Used for corporate AMT adjustments plus adjusted current earnings (ACE)
- A = Adjustments for gain/loss (due to depreciation)
- L = Long-term contracts must use % completion
- I = Installment sales for dealers
- E = Excess depreciation
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- M = Municipal interest income (this is tax free income)
- O = Organizational expense amortization
- L = Life insurance proceeds on key employees (this is tax free income)
- D = Difference between AMT and ACE depreciation
- D = Dividends received deduction (this is tax free income)
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