The sale of business property could result in an AMT adjustment.

Question

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When a business property is sold at a gain, it could trigger an adjustment under the Alternative Minimum Tax (AMT) rules. This is because the AMT has different rules for calculating taxable income and may disallow certain deductions or exemptions that would otherwise decrease regular tax liability. As a result, the gain on the sale of business property may be subject to AMT, resulting in an additional tax liability.

The Sale of Business Property Could Result in an AMT