True/False
Indicate whether the
statement is true or false.
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1.
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The AMT calculated using the
indirect method will produce a different amount than the AMT calculated using the direct
method.
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2.
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AMT adjustments can be positive
or negative, whereas AMT preferences are always positive.
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3.
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Unless circulation expenditures are amortized over a three-year period for
regular income tax purposes, there will be an AMT adjustment.
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4.
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If Abby’s alternative
minimum taxable income exceeds her regular taxable income, she will have an alternative minimum
tax.
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5.
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The phaseout of the AMT exemption amount for a taxpayer filing as a head of
household both begins and ends at a higher income level than it does for a single taxpayer
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Multiple Choice
Identify the
choice that best completes the statement or answers the question.
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6.
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Which of the following statements is correct?
a. | If the tentative minimum tax exceeds the regular income tax liability, the AMT is
$0. | d. | Only a. and c. are correct. | b. | The exemption amount decreases as AMTI
increases. | e. | a., b., and c.
are correct. | c. | The AMT tax rate for an individual taxpayer can be as high as
26%. |
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7.
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Which of the
following amounts generally produce positive AMT adjustments?
a. | Real property taxes deduction. | d. | Only a. and b. are
correct. | b. | Personal exemption deduction. | e. | a., b., and c. are correct. | c. | Charitable
contribution deduction. |
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