taxpayer required to pay the AMT

Related BrainMass Solutions

• When must a taxpayer pay AMT? What is AMT?

  336367 When must a taxpayer pay AMT? What is AMT? When is a taxpayer required to pay the AMT? What are the differences between the AMT and regular tax? What are the differences between tax preferences and adjustments concerning the AMT?

• AMT: when required, differences, preferences v adjustments

  320902 AMT: when required, differences, preferences v adjustments, examples When is a taxpayer required to pay the AMT? What are the differences between the AMT and regular tax?

• AMT Amounts

  What is the amount of their total tax liability? A. $2,997 B. $11,843 C. $15,750 D. $28,503 Correct. The taxpayer must pay whichever is higher - regular tax or AMT. If AMT is higher, that is the amount that the taxpayer must pay.

• Taxation Questions - minimum NOL tax

  The AMT was designed to ensure that all taxpayers that produce income pay at least a certain amount in income taxes.

• Examples of AMT Adjustments for individuals and corporations

  289832 Examples of AMT Adjustments for individuals and corporations Identify an AMT adjustment that applies for the individual taxpayer that does not apply for the corporate taxpayer and Identify an AMT adjustment that applies for the corporate taxpayer

• Do you think that credits and other tax incentives actually cause companies to change economic behavior to utilize these tax provisions? Are they important to the economy? Is the idea of an Alternative Minimum Tax (AMT) fair? Why or why not? Has the AMT worked in the manner in which it was originally intended?

  Rather than affecting only high-income taxpayers who would otherwise pay no tax, the AMT has extended its reach to many upper-middle-income households.

• How does the alternative minimum tax system differ from the

  The AMT system was implemented to ensure that all taxpayers paid some amount of tax each year. Previous to AMT, some wealthier taxpayers were able to completely eliminate their income tax liability. AMT ensures that every taxpayer pays taxes.

• Taxation: Marriage penalty, AMT exemption, FICA tax

  Remember that AMT was designed to make sure that people who reduce large incomes with losses and deductions will still have to pay AMT.

• Sharon, a single taxpayer, has taxable income of $100,000, a regular tax liability of $26,560, a positive AMT adjustment due to limitations on itemized deductions of $20,000, and tax preferences of $25,000 in 2006. What is Sharon's AMT for 2006? Can you please show me step by step how this is calculated?

  Therefore her AMT Income for AMT tax purposes is 131,560 - 57,785 = 73,775. Now, we take 28% of that amount to get 20,657. I hope this makes it easier to understand AMT. The solution provides calculation and reason shown for you. No references.