The net capital gain included in an individual taxpayer's AMT base is eligible for the beneficial alternative tax rate on net capital gain.This favorable alternative rate applies both in calculating the regular income tax and the AMT.

Question

Quizplus · Accepted Answer

The statement is true. The net capital gain included in an individual taxpayer's AMT base is eligible for the beneficial alternative tax rate on net capital gain, which applies in both the calculation of regular income tax and AMT. This provision was introduced to provide relief to taxpayers from the higher tax rates that could otherwise be applied under AMT.

The Net Capital Gain Included in an Individual Taxpayer's AMT