Urban Corporation receives tax-exempt income from Denver municipal bonds.All the proceeds from the bonds were used to fund public projects.In computing adjusted current earnings in its AMT computation,Urban must add back the interest income from its municipal bonds.

Question

Quizplus · Accepted Answer

Interest income from municipal bonds used to fund public projects is generally exempt from the Alternative Minimum Tax (AMT) add-back requirement.

Urban Corporation Receives Tax-Exempt Income from Denver Municipal Bonds