Which of the following statements concerning capital gains and losses and the AMT is correct?
A)The lower tax rate on net capital gain is not allowed in the calculation of tentative minimum tax.
B)Net capital losses disallowed for regular tax purposes are deductible in the calculation of AMTI.
C)The lower tax rate on net capital gain applies in calculating both regular income tax and the tentative minimum tax.
D)Net capital gain is taxed at the maximum 28% AMT rate.

Question

Quizplus · Accepted Answer

The lower tax rate on net capital gain applies to both the calculation of regular income tax and the Alternative Minimum Tax (AMT), ensuring that taxpayers benefit from the reduced rates on long-term capital gains under both tax systems.

Which of the Following Statements Concerning Capital Gains and Losses