In 2021, Geoff incurred $900,000 of mine and exploration expenditures. He elects to deduct the expenditures as

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In 2021, Geoff incurred $900,000 of mine and exploration expenditures. He elects to deduct the expenditures as quickly as the tax law allows for regular tax purposes.

a. How will Geoff’s treatment of mine and exploration expenditures affect his regular tax and AMT computations for 2021?

b. How can Geoff avoid having AMT adjustments related to the mine and exploration expenditures?

c. What factors should Geoff consider in deciding whether to deduct the expenditures in the year incurred?

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South-Western Federal Taxation 2022 Individual Income Taxes

ISBN: 9780357519073

45th Edition

Authors: James C. Young, Annette Nellen, William A. Raabe, Mark Persellin, William H. Hoffman

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Question Posted: Jul 13, 2022 01:14 AM

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In 2021, Geoff incurred $900,000 of mine and exploration expenditures. He elects to deduct the expenditures as

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Solution While the elections available change the tax expense of mining and explora...View the full answer

South-Western Federal Taxation 2022 Individual Income Taxes

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