Question
Dylan is a single taxpayer with $600,000 of taxable income, which results in a regular tax liability of $186,072 in 2021. Dylan is extremely cautious
Dylan is a single taxpayer with $600,000 of taxable income, which results in a regular tax liability of $186,072 in 2021. Dylan is extremely cautious about being subject to AMT and wants to know how much AMT preferences or adjustments she can afford without being subject to AMT.
a. Compute the amount of preferences and adjustments it would take for Dylan to have AMT.
b. Comment on why it takes so many adjustments for Dylan to enter AMT.
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
