The net capital gain included in an individual taxpayer's AMT base is eligible for the lower tax rate on net capital gain. This favorable alternative rate applies both in calculating the regular income tax and the AMT.

Question

Quizplus · Accepted Answer

The statement is true. The lower tax rate on net capital gain applies to both regular income tax and the AMT, and the net capital gain included in an individual taxpayer's AMT base is eligible for this favorable rate.

The Net Capital Gain Included in an Individual Taxpayer's AMT