Which of the following is (are) AMT tax preference item(s)?
I.Tax-exempt interest from state and municipal bonds.
II.Percentage depletion in excess of basis.

A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Question

Which of the following is (are) AMT tax preference item(s)?
I.Tax-exempt interest from state and municipal bonds.
II.Percentage depletion in excess of basis.
​
A)Only statement I is correct.
B)Only statement II is correct.
C)Both statements are correct.
D)Neither statement is correct.

Quizplus · Accepted Answer

Tax-exempt interest from state and municipal bonds is not considered as an AMT tax preference item as it is already exempt from regular income tax. However, percentage depletion in excess of basis is considered as an AMT tax preference item.

Which of the Following Is (Are) AMT Tax Preference Item(s)