Grumond was incorporated on January 1, 2010, and adopted a calendar year for tax purposes. It had the following gross receipts for its first six taxable years: For which of these years is Grumond exempt from AMT?

Question

Grumond was incorporated on January 1, 2010, and adopted a calendar year for tax purposes. It had the following gross receipts for its first six taxable years:  For which of these years is Grumond exempt from AMT?

Quizplus · Accepted Answer

Grumond is exempt from AMT for the first four years it was in operation (i.e., 2010-2013), as the AMT exemption amount for corporations was $40,000 for those years. For the fifth year (2014), the exemption amount was $21,750, and for the sixth year (2015), it was $22,500. Therefore, Grumond is not exempt from AMT in 2014 and 2015.

Grumond Was Incorporated on January 1, 2010, and Adopted a Calendar