FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Business Tax Credits and the Alternative Minimum Tax

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

During the year, Green, Inc., incurs the following research expenditures: Green's qualifying research expenditures for the year are:

A) $60,000.
B) $75,000.
C) $79,500.
D) $90,000.

E) B) and D)
F) A) and C)

Correct Answer

verified

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

Waltz, Inc., a U.S.taxpayer, pays foreign taxes of $50,000 on foreign-source general basket income of $90,000.Waltz's worldwide taxable income is $450,000, on which it owes U.S.taxes of $94,500 before FTC.Waltz's FTC is $50,000.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

Essay

Review LaterAdd Note

Andrea, will not itemize deductions in calculating her 2018 taxable income.What is the amount of the AMT adjustment in calculating AMTI?

BlueCo incurs $900,000 during the year to construct a facility that will be used exclusively for the care of its employees' pre-school age children during normal working hours.The credit for employer-provided child care available to BlueCo this year is $225,000.

Prior to consideration of tax credits, Clarence's regular income tax liability is $200,000 and his tentative minimum tax TMT) is $180,000.Clarence holds nonrefundable business tax credits of $35,000.His tax liability is $165,000.

The deduction for charitable contributions in calculating the regular income tax can differ from that in calculating the AMT, because the percentage limitations 20%, 30%, and 50%) may be applied to a different base amount.

Tad and Audria, who are married filing a joint return, have AMTI of $1,256,000 for 2018.Calculate their AMT exemption.

Which of the following statements concerning capital gains and losses and the AMT is correct?

Negative AMT adjustments for the current year caused by timing differences are offset by the positive AMT adjustments in prior tax years also caused by timing differences.

The recognized gain for regular income tax purposes and the recognized gain for AMT purposes on the sale of stock acquired with an incentive stock option ISO) are always the same, because the adjusted basis is the same.

What tax rates apply in calculating the TMT for an individual taxpayer?

The AMT adjustment for research and experimental expenditures can be avoided if the taxpayer capitalizes the expenditures and amortizes them over a 10-year period for regular tax purposes.

What itemized deductions are allowed for both regular income tax purposes and for AMT purposes?

What is the relationship between taxable income and AMTI?

Employers are encouraged by the work opportunity tax credit to hire individuals who have been long-term recipients of family assistance welfare benefits.

If a taxpayer deducts the standard deduction in calculating regular taxable income, what effect does this have in calculating AMTI?

Several years ago, Sarah purchased a certified historic structure for $150,000 that was placed in service in 1929.In the current year, she incurred qualifying rehabilitation expenditures of $200,000.The amount of the tax credit for rehabilitation expenditures, and the amount by which the building's basis for cost recovery would increase as a result of the rehabilitation expenditures are the following amounts.

The phaseout of the AMT exemption amount for a taxpayer filing as a head of household both begins and ends at a higher income level than it does for a single taxpayer.

Because passive losses are not deductible in computing either taxable income or AMTI, no AMT adjustment for passive losses is required.

In 2018, Liam's filing status is married filing separately.For regular tax purposes, he has three dependents.Liam does not itemize deductions; his regular taxable income is $456,000. What is Liam's 2018 AMT base?