Which of the following regular taxable income amounts does not potentially create an adjustment or preference in both the individual and the corporate AMT calculations?
A)Depreciation on tangible property placed in service after 1998.
B)The excess of percentage depletion over basis.
C)The deduction for state and local taxes.
D)The use of the completed contract method of accounting for long-term contracts.

Question

​Which of the following regular taxable income amounts does not potentially create an adjustment or preference in both the individual and the corporate AMT calculations? ​
A)​Depreciation on tangible property placed in service after 1998.
B)​The excess of percentage depletion over basis.
C)​The deduction for state and local taxes.
D)​The use of the completed contract method of accounting for long-term contracts.

Quizplus · Accepted Answer

Deduction for state and local taxes is not an adjustment or preference item in both individual and corporate AMT calculations. Depreciation on tangible property placed in service after 1998, excess of percentage depletion over basis, and use of completed contract method of accounting for long-term contracts are all potential adjustment or preference items for both AMT calculations.

​Which of the Following Regular Taxable Income Amounts Does Not

Which of the Following Regular Taxable Income Amounts Does Not