FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Business Tax Credits and the Alternative Minimum Tax

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 61

True/False

Review LaterAdd Note

Review Later

AMT adjustments can be positive or negative, whereas AMT preferences always are positive.

A) True
B) False

Correct Answer

verified

Show Answer

Question 62

Multiple Choice

Review LaterAdd Note

Review Later

Amber is in the process this year of renovating the office building placed in service in 1976) used by her business.Because of current Federal Regulations that require the structure to be accessible to handicapped individuals, she incurs an additional $11,000 for various features, such as ramps and widened doorways, to make her office building more accessible.The $11,000 incurred will produce a disabled access credit of what amount?

A) $0
B) $5,000
C) $5,125
D) $5,500

E) B) and C)
F) A) and D)

Correct Answer

verified

Show Answer

Question 63

Essay

Review LaterAdd Note

Steve records a tentative general business credit of $110,000 for the current year.His net regular tax liability before t general business credit is $125,000, and his tentative minimum tax is $100,000.Compute Steve's allowable general business credit for the year.

Madge's tentative minimum tax TMT) is $112,000.Her regular income tax liability is $99,000.Madge's AMT is $13,000.

Why does Congress see a need for a second tax system called the alternative minimum tax?

Qualified rehabilitation expenditures include the cost of acquiring the building, but not the cost of acquiring the land.

A small employer incurs $1,500 for consulting fees related to establishing a qualified retirement plan for its 75 employees.As a result, the employer may claim the credit for small employer pension plan startup costs for $750.

A LIFO method is applied to general business credit carryovers, carrybacks, and utilization of credits earned during a particular year.

The standard deduction is allowed for regular income tax purposes, but is disallowed for AMT purposes.This results in a positive AMT adjustment.

Mitch, who is single and age 46 and has no dependents, had AGI of $100,000 this year.His potential itemized deductions were as follows. What is the amount of Mitch's AMT adjustment for itemized deductions for 2018?

Molly has generated general business credits over the years that have not been utilized.The amounts generated and not utilized follow: In the current year, 2018, her business generates an additional $15,000 general business credit.In 2018, based on her tax liability before credits, she can utilize a general business credit of up to $20,000.After utilizing the carryforwards and the current year credits, how much of the general business credit generated in 2018 is available for future years?

Kerri, who has AGI of $120,000, itemized her deductions in the current year.She incurred unreimbursed employee business expenses of $8,500.Kerri incurs a positive AMT adjustment of $2,400 in computing AMT.

The AMT calculated using the indirect method will produce a different amount than the AMT calculated using the direct method.

Benita expensed mining exploration and development costs of $500,000 incurred in the current tax year.She will be required to make negative AMT adjustments for each of the next ten years and a positive AMT adjustment in the current tax year.

An employer's tax deduction for wages is affected by the work opportunity tax credit.

What is the relationship between the regular income tax liability and the TMT?

In the current tax year, for regular tax purposes, Avery reports $65,000 of income and $190,000 of deductions from passive activities.For AMT purposes, the passive activity income amount is unchanged, but deductions from passive activities total $150,000. What is Avery's suspended passive loss for regular tax and for AMT purposes?

Which, if any, of the following correctly describes the research activities credit?

Discuss the tax year in which an AMT adjustment is first required for an incentive stock option ISO).

Without the foreign tax credit, double taxation would result when: