A taxpayer at risk for AMT should consider which of the following decisions?
A)investing in corporate bonds
B)timing of state income tax estimated payments
C)choosing a depreciation method for a new business building
D)all of the above

Question

Quizplus · Accepted Answer

Investing in corporate bonds and choosing a depreciation method for a new business building won't have much impact on AMT status. However, timing of state income tax estimated payments can affect AMT liability. Taxpayers subject to AMT lose the full benefit of their state income tax deduction, so they may want to adjust their estimated payments accordingly to avoid underpayment penalties while still minimizing AMT liability.

A Taxpayer at Risk for AMT Should Consider Which of the Following