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

Question

Quizplus · Accepted Answer

Interest income on private activity bonds issued before 2009 is a tax preference item and is included in computing AMTI. The expenses incurred in carrying the bonds can be deducted, but the net income is still considered a tax preference item.

Interest Income on Private Activity Bonds Issued Before 2009, Reduced