What is a small corporation exempt from AMT?
Certain “small” corporations are exempt from the AMT. These are corporations whose average annual gross receipts for all three-year periods beginning after 1993 and ending before the current year do not exceed $7.5 million.Click to see full answer. Similarly one may ask, what is the alternative minimum tax for corporations? Fiscal year C corporations The…
Certain “small” corporations are exempt from the AMT. These are corporations whose average annual gross receipts for all three-year periods beginning after 1993 and ending before the current year do not exceed $7.5 million.Click to see full answer. Similarly one may ask, what is the alternative minimum tax for corporations? Fiscal year C corporations The tentative minimum tax is 20 percent of a C corporation’s alternative minimum taxable income, which is income refigured using special rules applicable to the AMT, minus an exemption amount and reduced by the foreign tax credit refigured for the AMT.Secondly, who does AMT apply to? The AMT increased taxes for 27.2 percent of households with “expanded cash income” (a broad measure of income) between $200,000 and $500,000, 61.9 percent of those with incomes between $500,000 and $1 million, and 20.6 percent of households with incomes greater than $1 million. Also question is, what is the AMT exemption? The AMT exemption functions something like a standard deduction for the alternative minimum tax. Instead of all the deductions and other adjustments that are taken away when calculating AMTI, taxpayers can reduce their AMT income by claiming the exemption amount for their filing status instead.What is basis for AMT gain loss?If your depreciation is lower for AMT than for your regular taxes, your basis will be higher for AMT. Since you have a higher basis, your gain will be lower or your loss will be greater. This difference in basis usually results in an adjustment in the year you sell the asset.
