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Federal Taxation

Business

Quiz 29 :

Special Tax Computation Methods, Tax Credits, and Payment of Tax

Quiz 29 :

Special Tax Computation Methods, Tax Credits, and Payment of Tax

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The itemized deduction phase-out, which has the effect of increasing regular taxable income for high income taxpayers, will also raise AMTI.
Free
True False
Answer:

Answer:

False

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A taxpayer acquired new equipment to be used in her business this year. For AMT purposes, depreciation must be recalculated using the straight-line method over the same recovery period used for regular tax purposes.
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True False
Answer:

Answer:

False

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Casualty and theft losses in excess of 10% of AGI are deductible for AMT purposes.
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True False
Answer:

Answer:

True

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For purposes of the AMT, only the foreign tax credit and refundable personal credits are allowed to reduce the tentative minimum tax.
True False
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An example of an AMT tax preference item is the excess of MACRS depreciation on equipment over depreciation computed by using the the 150% declining balance method.
True False
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In computing AMTI, adjustments are
Multiple Choice
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A taxpayer who paid AMT in prior years, but is not subject to the AMT in the current year, may be entitled to an AMT credit against his regular tax liability in the current year.
True False
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Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2016 and file a joint return. For purposes of computing the alternative minimum tax, their exemption is
Multiple Choice
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In computing AMTI, tax preference items are
Multiple Choice
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For purposes of the AMT, the standard deduction, but not the personal and dependency exemptions, is allowed.
True False
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The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability.
True False
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In 2016 Charlton and Cindy have alternative minimum taxable income of $130,000 and file a joint return. For purposes of computing the alternative minimum tax, their exemption is
Multiple Choice
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A taxpayer acquired an office building to be used in her business this year. For AMT purposes, depreciation must be re-calculated using the straight-line method over 40 years.
True False
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Harley's tentative minimum tax is computed by multiplying the AMT tax rates by her
Multiple Choice
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All tax-exempt bond interest income is classified as an AMT preference.
True False
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Medical expenses in excess of 10% of AGI are deductible when computing AMT for taxpayers under the age of 65.
True False
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Drake and Davina are married and file a joint return for 2016 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes. Their regular tax liability is $16,533. What is the amount of their total tax liability?
Multiple Choice
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In computing the alternative minimum taxable income, no deduction is allowed for
Multiple Choice
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All of the following are allowable deductions under the alternative minimum tax except
Multiple Choice
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Jake and Christina are married and file a joint return for 2016 with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes. Their regular tax liability is $16,533. What is the amount of their total tax liability?
Multiple Choice
Answer:
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