Kay,who is single,had taxable income of $0 in 2014.She has positive timing adjustments of $206,300 and exclusion items of $100,000 for the year.What is the amount of her alternative minimum tax credit for carryover to 2015?
A)$80,560
B)$68,861
C)$68,288
D)$12,272
E)None of these

Question

Quizplus · Accepted Answer

AMT computation: $0 taxable income + $206,300 adjustments + $100,000 exclusion items = $306,300 AMTI - $5,550 AMT exemption = $300,750 AMT base.$47,450 ($182.500 × 26 % AMT rate)+ 33,110 [($300,750 - $182,500)× 28% AMT rate] = $80,560 tentative AMT - $0 regular income tax = $80,560 AMT.
AMT without timing adjustments: $0 taxable income + $100,000 exclusion items = $100,000 AMTI - $52,800 = $47,200 AMT base × 26% AMT rate = $12,272 tentative AMT - $0 regular income tax = $12,272 AMT without timing adjustments = $68,288 ($80,560 - $12,272)AMT credit.

Kay,who Is Single,had Taxable Income of $0 in 2014