Alternative Minimum Tax (AMT) Self-Study
Alternative minimum tax (AMT) is a tax originally put in place to prevent the wealthy from reducing their tax bill through certain deductions. The intent was to keep income tax at a reasonable rate for each taxpayer at their income level, however, because the AMT exemption amount has not kept up with the cost of living, this tax has crept down and now impacts those in lower income tax brackets. This course will focus on AMT adjustments and teach you how to compile the necessary forms for working with AMT.
Upon completion of this course, you will be able to:
- Identify AMT adjustment and preference items.
- Distinguish between temporary and permanent AMT adjustments.
- Determine the tax consequences for regular tax and AMT when incentive stock options (ISOs) are exercised and sold.
- Calculate the different depreciation amounts for regular tax and AMT.
- Complete Form 6251, Alternative Minimum Tax – Individuals.
- Complete Form 8801, Credit for Prior Year Minimum Tax – Individuals, Estates and Trusts.
This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.