Which of the following statements describing the alternative minimum tax (AMT) is most correct?
A) Generally, those taxpayers most concerned about being in AMT are low income taxpayers who elect the standard deduction.
B) The AMT was enacted in an attempt to limit the ability of taxpayers to engage in questionable tax planning activities.
The goal of the AMT
C) The goal of the AMT is to try and ensure that all taxpayers with economic income pay at least some income tax.
D) Exemption amounts are higher for regular tax purposes than for AMT purposes.
E) a. and d. are correct

Question

​Which of the following statements describing the alternative minimum tax (AMT) is most correct?
A) Generally, those taxpayers most concerned about being in AMT are low income taxpayers who elect the standard deduction.
B) The AMT was enacted in an attempt to limit the ability of taxpayers to engage in questionable tax planning activities.
The goal of the AMT
C) The goal of the AMT is to try and ensure that all taxpayers with economic income pay at least some income tax.
D) Exemption amounts are higher for regular tax purposes than for AMT purposes.
E) a. and d. are correct

Quizplus · Accepted Answer

The alternative minimum tax (AMT) was created to ensure that all taxpayers with economic income pay at least some income tax. It was not designed to target low-income taxpayers who elect the standard deduction, as suggested in option A. While option B is true, it does not fully capture the purpose of the AMT. Exemption amounts are indeed higher for regular tax purposes than for AMT purposes, as stated in option D, but this does not provide a complete description of the AMT. Option E is incorrect as option A is not true.

​Which of the Following Statements Describing the Alternative Minimum Tax

Which of the Following Statements Describing the Alternative Minimum Tax