Assume a corporation is not required to pay AMT in the current year but will pay AMT next year.Also assume the corporation's regular marginal tax rate is 35%.Which tax planning strategy would minimize its after-tax cost of a charitable contribution it is considering paying to a qualified charity?

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If the corporation pays the contribution this year, it can take advantage of the regular marginal tax rate of 35% to reduce its tax liability. Next year, when it is subject to AMT, the corporation will not receive the same tax benefit. Therefore, paying the contribution this year would minimize the after-tax cost of the charitable contribution.

Assume a Corporation Is Not Required to Pay AMT in the Current