
The  is applied only if the tentative minimum tax exceeds the taxpayer’s regular tax liability.
The alternative minimum tax (AMT) is applied only if the tentative minimum tax exceeds the taxpayer’s regular tax liability.

The alternative minimum tax (AMT) is applied only if the  exceeds the taxpayer’s regular tax liability.
The alternative minimum tax (AMT) is applied only if the tentative minimum tax exceeds the taxpayer’s regular tax liability.

The alternative minimum tax (AMT) is applied only if the tentative minimum tax exceeds the taxpayer’s
The alternative minimum tax (AMT) is applied only if the tentative minimum tax exceeds the taxpayer’s regular tax liability.

Individuals use Form  to calculate AMT.
Individuals use Form 6251 to calculate AMT.

Individuals use Form 6251 to calculate .
Individuals use Form 6251 to calculate AMT.

Only certain itemized deductions are allowed in calculating the AMT. The following are not allowed and must be added back for AMT if deducted for regular tax:


Only certain itemized deductions are allowed in calculating the AMT. The following are not allowed and must be added back for AMT if deducted for regular tax:
State, local, and foreign income taxes
Real and personal property taxes

Alternative Minimum taxable income formula

+Tax preferences
+ Standard deduction if taxpayer does not itemize
+/ certain other adjustments
= Alternative minimum taxable income
Alternative Minimum taxable income formula
Taxable income
+Tax preferences
+ Standard deduction if taxpayer does not itemize
+/ certain other adjustments
= Alternative minimum taxable income

Alternative Minimum taxable income formula
Taxable income

+ Standard deduction if taxpayer does not itemize
+/ certain other adjustments
= Alternative minimum taxable income
Alternative Minimum taxable income formula
Taxable income
+Tax preferences
+ Standard deduction if taxpayer does not itemize
+/ certain other adjustments
= Alternative minimum taxable income

Alternative Minimum taxable income formula
Taxable income
+Tax preferences

+/ certain other adjustments
= Alternative minimum taxable income
Alternative Minimum taxable income formula
Taxable income
+Tax preferences
+ Standard deduction if taxpayer does not itemize
+/ certain other adjustments
= Alternative minimum taxable income

Alternative Minimum taxable income formula
Taxable income
+Tax preferences
+ Standard deduction if taxpayer does not itemize

= Alternative minimum taxable income
Alternative Minimum taxable income formula
Taxable income
+Tax preferences
+ Standard deduction if taxpayer does not itemize
+/ certain other adjustments
= Alternative minimum taxable income

Alternative minimum tax formula
Alternative minimum taxable income

= Alternative minimum tax base
X rate
 regular income tax
= Alternative minimum tax
Alternative minimum tax formula
Alternative minimum taxable income
 exception amount
= Alternative minimum tax base
X rate
 regular income tax
= Alternative minimum tax

Alternative minimum tax formula
Alternative minimum taxable income
exception amount
= 
X rate
 regular income tax
= Alternative minimum tax
Alternative minimum tax formula
Alternative minimum taxable income
exception amount
= Alternative minimum tax base
X rate
 regular income tax
= Alternative minimum tax

Alternative minimum tax formula
Alternative minimum taxable income
exception amount
= Alternative minimum tax base
X rate

= Alternative minimum tax
Alternative minimum tax formula
Alternative minimum taxable income
exception amount
= Alternative minimum tax base
X rate
 regular income tax
= Alternative minimum tax

Alternative minimum tax formula
Alternative minimum taxable income
exception amount
= Alternative minimum tax base
X rate
 regular income tax
= 
Alternative minimum tax formula
Alternative minimum taxable income
exception amount
= Alternative minimum tax base
X rate
 regular income tax
= Alternative minimum tax

What are the exemption amounts for the AMT calculation for the following:
Married filing jointly 
Single 
Married filing separately 
What are the exemption amounts for the AMT calculation for the following:
Married filing jointly $113,400
Single $72,900
Married filing separately $56,700

What are the exemption amounts for the AMT calculation for the following:
Married filing jointly 
Single 
Married filing separately 
What are the exemption amounts for the AMT calculation for the following:
Married filing jointly $113,400
Single $72,900
Married filing separately $56,700

What are the 25% phaseout amounts for excess over the amounts for the AMT calculation for the following:
Married filing jointly 
Single 
Married filing separately 
What are the 25% phaseout amounts for excess over the amounts for the AMT calculation for the following:
Married filing jointly $ 1,036,800
Single $ 518,400
Married filing separately $ 518,400

What are the alternative minimum tax base(s) for the AMT calculation for the following:
First $197,900 ($98,950 MFS) 
Excess 
What are the alternative minimum tax base(s) for the AMT calculation for the following:
First $197,900 ($98,950 MFS) 26%
Excess 28%

Tax preference items
Always have a positive adjustment to the taxable income.
Examples of tax preference items




Tax preference items
Always have a positive adjustment to the taxable income.
Examples of tax preference items

 Taxexempt interest on private activity bonds
 Excess depletion
 Intangible drilling costs
 Small business stock exclusion

The AMT credit can be carried forward .
The AMT credit can be carried forward indefinitely.

AMT preferences are items that are allowed relatively favorable treatment in determining r. These preferences are added back to taxable income (TI) to arrive at the alternative minimum taxable income (AMTI).
AMT preferences are items that are allowed relatively favorable treatment in determining regular taxable income. These preferences are added back to taxable income (TI) to arrive at the alternative minimum taxable income (AMTI).

AMT preferences are items that are allowed relatively favorable treatment in determining regular taxable income. These preferences are to arrive at the alternative minimum taxable income (AMTI).
AMT preferences are items that are allowed relatively favorable treatment in determining regular taxable income. These preferences are added back to taxable income (TI) to arrive at the alternative minimum taxable income (AMTI).

AMT preferences are items that are allowed relatively favorable treatment in determining regular taxable income. These preferences are added back to taxable income (TI) to arrive at the .
AMT preferences are items that are allowed relatively favorable treatment in determining regular taxable income. These preferences are added back to taxable income (TI) to arrive at the alternative minimum taxable income (AMTI).

West is single, has no dependents, and does not itemize. Which of the following are Wests AMT tax Preference items?
Longterm capital gain
or
Percentage depletion in excess of property’s adjusted basis
or
Dividends from publiclyheld companies

 Percentage depletion in excess of property’s adjusted basis

Individuals are entitled to claim itemized deductions in calculating AMT with certain adjustments. The following itemized deductions are not allowed:
 and

Individuals are entitled to claim itemized deductions in calculating AMT with certain adjustments. The following itemized deductions are not allowed:
State, local, and foreign income taxes, and
Real and personal property taxes.

Which of the following can be itemized deductions for alternative minimum tax?
Medical expenses ( before percentage limitations)
State income taxes
Real estate taxes
Qualified housing and residence mortgage interest
Home equity mortgage interest (used to consolidate personal debts)
Charitable contributions (cash)
Qualified housing and residence mortgage interest
Home equity mortgage interest (used to consolidate personal debts)
Charitable contributions (cash)

Standard deductions are  to taxable income when calculating the Alternative Minimum Tax.
Standard deductions are added back to taxable income when calculating the Alternative Minimum Tax.

