Individual Corporation

Regular Taxable Income Regular Taxable Income before NOL Deduction

+ Tax Preferences + Tax Preference Items

+ (-) Adjustment + (-) Adjustments (Other than ACE and NOL ded)

= Alternative Minimum Taxable Income
- Exemption Amount
_________________________________________
= Alternative Minimum Tax Base
Pre-ACE Alternative Minimum Taxable Income (AMTI)
+ (-) ACE Adjustment [ 75% X (Pre-ACE AMTI – ACE)]
- AMT NOL deduction [Limited to 90% of pre-NOL
AMTI]

X 26% OR 28% = Alternative Mininmum Taxable Income (AMTI)

________________________________________ - Exemption ($ 40,000 less 25% of AMTI over $

150,000)
= Tentative before Foreign Tax Credit
_______________________________________
 AMT Foreign Tax Credit Alternative Minimum Tax Base

____________________________________ X 20% Rate

= Tentative Minimum Tax ____________________________________

Tentative AMT before Foreign Tax Credit
 Regular Tax Liability (Reduced by regular tax
foreign Tax Credit) - AMT Foreign Tax Credit

_____________________________________ = Tentative Minimum Tax (TMT)

= AMT (If positive) - Regular Income Tax (Less Regular Yax Foreign
Tax Credit)

_______________________________________

= Alternative Minimum Tax (If positive)

 Individual Corporation

 Exemption  Exemption

AMTI is offset by an exemption. However, the AMT AMTI is offset by a $40,000 exemption.
exemption amount is phased out at the rate of 25% of However, the exemptions is reduced by 25%
AMTI between certain specific levels. of AMTI over $ 150,000, and completely
phased out once AMTI reaches $310,000.
Filing Status AMT Exemption Phase range

 Preference Items
 Preference Items
1. Same
1. Tax-exemption on private activity
bonds

2. Excess of Accelarted over straight-line 2. Same

depreciation on real property before
1987

3. The excess of 3. Same

4. 7% of the amount of excluded gain 4. The excess of intangible drilling costs

from Sec. 1202 small business stock using a 10 year amortization over 65%
of net oil and gas income

 Adjustments
 Adjustments

1. (+) Difference between regular tax

depreciation and SLD OVER 40 Yrs 1. ,,,,
(For Real Property placed in service
after 1986 and Before 1999)

2. (+) Difference between regular tax 2. ...

depreciation using 200% declining
balance method and depreciation
using the 150% declining balance
method (For Personal property placed
after 1986)

3. (+) Excess of of stock’s FV over

amount paid upon exercise 3. ..

4. The medical expense deduction 4. ..

5. No ded

6. No

7. No

8. For Long-term

9. The installment method