Benita expensed mining exploration and development costs of $500,000 incurred in the current tax year.She will be required to make negative AMT adjustments for each of the next 10 years.

Question

Quizplus · Accepted Answer

Mining exploration and development costs are typically considered preference items for Alternative Minimum Tax (AMT) purposes and may require an adjustment in the year they are incurred, not spread over the next 10 years.

Benita Expensed Mining Exploration and Development Costs of $500,000 Incurred