An exemption amount is allowed for the AMT calculation I. as a deduction from tentative AMTI. II. to provide the average individual taxpayer with the opportunity to not be effected by the AMT provisions. III. through legislative grace for taxpayers with moderate amounts of taxable income and without significant preferences and/or adjustments. IV. In the amount of $51,900 for married taxpayers filing jointly.
A) Only statement I is correct.
B) Only statement IV is correct.
C) Statements II and III are correct.
D) Statements I, II, and III are correct.
E) Statements I, II, III, and IV are correct.

Question

Quizplus · Accepted Answer

The exemption amount for AMT is allowed as a deduction from tentative AMTI (statement I) and is intended to prevent the average taxpayer from being affected by AMT (statement II). It is also provided through legislative grace for taxpayers with moderate income and without significant preferences (statement III). However, the exemption amount for married taxpayers filing jointly is not $51,900, making statement IV incorrect.

An Exemption Amount Is Allowed for the AMT Calculation I