A taxpayer who expenses circulation expenditures in the year incurred for regular income tax purposes will incur a positive AMT adjustment in the following year.

Question

Quizplus · Accepted Answer

Circulation expenditures are generally capitalized and amortized over a period of years for regular tax purposes, and the treatment for Alternative Minimum Tax (AMT) purposes follows the regular tax treatment, so expensing them in the year incurred does not lead to a positive AMT adjustment in the following year.

A Taxpayer Who Expenses Circulation Expenditures in the Year Incurred