A taxpayer's tentative minimum tax exceeds his net income tax so he will be paying the alternative minimum tax this year.The taxpayer has a sole proprietorship through which he has earned general business credits.The taxpayer can reduce his AMT to the extent of his general business credits.

Question

Quizplus · Accepted Answer

General business credits cannot be used to offset the alternative minimum tax (AMT). They can only reduce the regular tax liability.

A Taxpayer's Tentative Minimum Tax Exceeds His Net Income Tax