Jackson sells qualifying small business stock for $125,000 adjusted basis of $105,000) in 2018 the stock was acquired in 2012). In calculating gross income for regular income tax purposes, he excludes all of his realized gain of
$20,000. The $20,000 exclusion is a preference in calculating Jackson's AMTI.

Question

Quizplus · Accepted Answer

The exclusion of gain from the sale of qualified small business stock is not a preference item for calculating Alternative Minimum Taxable Income (AMTI).

Jackson Sells Qualifying Small Business Stock for $125,000 Adjusted Basis