For AMT purposes,a taxpayer must use which method to report proceeds from long-term contracts?
A)The completed contract method.
B)The percentage-of-completion method.
C)The installment method.
D)None of these.

Question

Quizplus · Accepted Answer

For AMT (Alternative Minimum Tax) purposes, the percentage-of-completion method is the required method to report proceeds from long-term contracts. This method recognizes income and expenses as they are incurred throughout the duration of the contract, rather than waiting until completion as in the completed contract method. The installment method is not applicable to reporting long-term contract income for AMT purposes.

For AMT Purposes,a Taxpayer Must Use Which Method to Report