Answer the following statements true (T) or false (F)
1. The alternative minimum tax applies to individuals only if it exceeds the taxpayer's regular income tax liability.
2. For purposes of the AMT, certain itemized deductions are disallowed, but the standard deduction is allowed.
3. An example of an AMT tax preference item is the excess of MACRS depreciation on equipment over depreciation computed by using the 150% declining balance method.
4. All tax-exempt bond interest income is classified as an AMT preference.
1. TRUE
The AMT serves as a tax floor so it will only be paid if it exceeds the regular tax.
2. FALSE
The standard deduction is not allowed for AMT.
3. FALSE
The AMT modification in the question is an adjustment, not a preference item.
4. FALSE
Interest on private activity municipal bond interest is an AMT preference item, but interest income from general purpose bonds is not a preference item.
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A. absenteeism B. diversity C. independence D. job satisfaction
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What will be an ideal response?
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