Grumond was incorporated on January 1,2010,and adopted a calendar year for tax purposes.It had the following gross receipts for its first six taxable years: For which of these years is Grumond exempt from AMT?

Question

Grumond was incorporated on January 1,2010,and adopted a calendar year for tax purposes.It had the following gross receipts for its first six taxable years:   For which of these years is Grumond exempt from AMT?

Quizplus · Accepted Answer

Grumond is exempt from AMT for the first $50,000 of its gross receipts for its first three taxable years (2010, 2011, and 2012) and the first $75,000 of its gross receipts for the fourth taxable year (2013) since it is a qualifying small business corporation. Therefore, Grumond is exempt from AMT for the years 2011, 2012, 2013, and 2014. In 2015, its gross receipts exceeded $5 million, making it ineligible for the exemption, and in 2016, it had gross receipts of $4 million which do not qualify for the exemption.

Grumond Was Incorporated on January 1,2010,and Adopted a Calendar Year