Questions from Federal Taxation

Q: Celine is going to be subject to the AMT in 2018.

Celine is going to be subject to the AMT in 2018. She owns an investment building and is considering disposing of it and investing in other realty Based on an appraisal of the building's value, the re...

Q: Paola exercised an incentive stock option on March 1, 2018.

Paola exercised an incentive stock option on March 1, 2018. She acquired 2,000 shares of stock at an exercise price of $3 per share when the fair market value of the stock was $15 per share. However,...

Q: How is it possible that a taxpayer could have an AMT NOL

How is it possible that a taxpayer could have an AMT NOL larger than his or her alternative minimum taxable income (TMT), yet still have a positive tentative minimum tax (TMT) amount?

Q: Matt, who is single, always has elected to itemize deductions

Matt, who is single, always has elected to itemize deductions rather than take the standard deduction. In prior years, his itemized deductions always exceeded the standard deduction by a substantial a...

Q: In the calculation of AMTI, where is the adjustment for the

In the calculation of AMTI, where is the adjustment for the standard deduction made and what is the reason for the adjustment?

Q: AMT liability results if the tentative minimum tax (TMT) exceeds

AMT liability results if the tentative minimum tax (TMT) exceeds the regular income tax liability. What happens if the regular income tax liability exceeds the TMT? Does this create a negative AMT amo...

Q: Can any non refundable credits, other than the forgive tax credit

Can any non refundable credits, other than the forgive tax credit, reducer the regular income tax liability below the amount of the TMT? Explain.

Q: Tad, who owns and operates a business acquired machinery and placed

Tad, who owns and operates a business acquired machinery and placed it in service in June 2009. The machinery is 10-year property. Does Tad need to make an AMT adjustment in 2009 or 2018 for the depre...

Q: Evaluate the validity of following statements: In a year of which

Evaluate the validity of following statements: In a year of which depreciable personal property is sold at a gain, the amount of the AMT gain will differ from the regu1ar tax gain

Q: Describe the exposure (i.e., wage base and tax

Describe the exposure (i.e., wage base and tax rate) that a self-employed individual has to the self-employment tax for 2018.