If a taxpayer elects to capitalize and to amortize intangible drilling costs over a three-year period for regular income tax purposes, there is no adjustment or preference for AMT purposes.

Question

Quizplus · Accepted Answer

Taxpayers who elect to capitalize and amortize intangible drilling costs over a three-year period for regular income tax purposes must adjust the deduction for AMT purposes. The adjustment is spread over a seven-year period.

If a Taxpayer Elects to Capitalize and to Amortize Intangible