Interest income on private activity bonds issued before 2009 and after 2010,reduced by expenses incurred in carrying the bonds,is a tax preference item that is included in computing AMTI.

Question

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Interest income on private activity bonds issued before 2009 and after 2010, reduced by expenses incurred in carrying the bonds, is a tax preference item that is added back to taxable income when computing alternative minimum taxable income (AMTI). This means that it is included in the calculation of AMTI, which can result in a higher tax liability for some taxpayers.

Interest Income on Private Activity Bonds Issued Before 2009 and After