If the taxpayer elects to capitalize intangible drilling costs and to amortize them over a 10-year period for regular income tax purposes, there is no adjustment or preference for AMT purposes.

Question

Quizplus · Accepted Answer

For Alternative Minimum Tax (AMT) purposes, if a taxpayer elects to capitalize intangible drilling costs and amortize them over a 10-year period, there is no adjustment or preference required, aligning the treatment for regular tax and AMT.

If the Taxpayer Elects to Capitalize Intangible Drilling Costs and to Amortize