Alternative Minimum Tax - For Individuals - Audit Technique Guide (ATG)

National Tax Services, Perspection Inc.

Informations

• Publié par: Nifong
• Nombre de lectures: 110
• Langue: English

Extrait

Internal Revenue Service
Market Segment Specialization Program

Alternative Minimum Tax
For Individuals

Audit Technique Guide (ATG)


NOTE: This guide is current through the publication date. Since changes
may have occurred after the publication date that would affect the accuracy
of this document, no guarantees are made concerning the technical
accuracy after the publication date.
This material was designed
specifically for training
purposes only. Under no
circumstances should the
contents be used or cited as
sustaining a technical
position.
The taxpayer names and
addresses shown in this
publication are
hypothetical. They were
chosen at random from a
list of names of
American colleges and
universities as shown in
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from a list of names of
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www.irs.gov
Training 3147-119 (12-1999)
Catalog Number 84294S
This page intentionally left blank.Alternative Minimum Tax for Individuals
Table of Contents
Chapter 1, Introduction ..................................................... 1-1
A B r ie f H is tor y of A lte r n a tiv e M in im u m T a x ................................. 1 - 1
C u r r e n t Y e a r s ’ A M T ................................................... 1 - 2
Chapter 2, Computing AMT ................................................. 2-1
Form 6251 Alternative Minimum Tax-Individuals.............................. 2-1
A d ju s tm e n ts a n d P r e fe r e n c e I te m s ......................................... 2 - 1
L in e 1 , S ta n d a r d D e d u c tion a n d I te m iz e d D e d u c tion s..................... 2 - 1
L in e 2 , M e d ic a l a n d D e n ta l E x p e n s e s ................................. 2 - 3
L in e 3 , T a x e s ................................................... 2 - 4
L in e 4 , I n te r e s t on H om e M or tg a g e .................................. 2 - 5
L in e 5 , M is c e la n e ou s I te m iz e d D e d u c tion s ............................ 2 - 6
L in e 6 , R e fu n d of T a x e s ........................................... 2 - 6
L in e 7 , I n v e s tm e n t I n te r e s t ......................................... 2 - 7
Line 8, Post-1986 Depreciation ..................................... 2-8
L in e 9 , A d ju s te d G a in or L os s 2 - 1 3
L in e 1 0 , I n c e n tiv e S toc k O p tion s ................................... 2 - 1 4
L in e 1 1 , P a s s iv e A c tiv itie s ........................................ 2 - 1 6
L in e 1 2 , B e n e fic ia r ie s of E s ta te s a n d T r u s ts ........................... 2 - 2 0
Line 13, Tax-exempt Interest from Private Activity Bonds
I s s u e d a fte r 8 / 7 / 8 6 2 - 2 0
O th e r I te m s of A d ju s tm e n t a n d T a x P r e fe r e n c e I te m s.......................... 2 - 2 2
Line 14a, Charitable Contributions (For Tax Years 1993–1997) ............ 2-22
Line 14b, Circulation Expenditures (For Tax Years 1993–1997;
Line 14a for Tax Year 1998) ................................. 2-22
Line 14c, Depletion (For Tax Years 1993–1997;
Line 14b for Tax Year 1998) 2-23
Line 14d, (Pre–1987) Depreciation (For Tax Years 1993–1997;
Line 14c for Tax Year 1998) 2-24
Line 14e, Installment Sales (For Tax Years 1993-1997; Line 14d for
iiiTax Year 1998) ........................................... 2-26
Line 14f, Intangible Drilling Costs (For Tax Years 1993–1997;
Line 14e for 1998) ........................................ 2-26
Line 14f, Large Partnerships (For Tax Year 1998) ...................... 2-29
Line 14g, Long-term Contracts ..................................... 2-29
Line 14h, Loss Limitations 2-31
L in e 1 4 i, M in in g C os ts ........................................... 2 - 3 2
Line 14j, Patron's Adjustment (For Tax Years 1994–1998) ................ 2-33
Line 14k, Pollution Control Facilities (For Tax Years 1994–1998; Line 14j
for Tax Year 1993) ........................................ 2-33
Line 14l, Research and Experimental Expenditures (For Tax Years 1994–1998;
Line 14k for Tax Year 1993). ................................ 2-34
Line 14m, Tax Shelter Farm Activities (For Tax Years 1994–1997; Line 14l
for Tax Year 1993; Line 14n for Tax Year 1998) ................. 2-36
Line 14m, Section 1202 Exclusion (For Tax Year 1998) .................. 2-37
Line 14n, Related Adjustments (For Tax Years 1993–1997; Line 14o for
Tax Year 1998) ........................................... 2-37
L in e 1 5 , T ota l A d ju s tm e n ts a n d P r e fe r e n c e s .......................... 2 - 3 8
A lte r n a tiv e M in im u m T a x a b le I n c om e ..................................... 2 - 3 8
L in e 1 6 , T a x a b le I n c om e B e for e P e r s on a l E x e m p tion s ................... 2 - 3 8
L in e 1 7 , N e t O p e r a tin g L os s ( N O L ) D e d u c tion ........................ 2 - 3 8
L in e 1 8 , P h a s e d - ou t I te m iz e d D e d u c tion s ............................ 2 - 3 8
L in e 1 9 , S u m of L in e s 1 5 th r ou g h 1 8 ................................ 2 - 3 9
L in e 2 0 , A lte r n a tiv e T a x N e t O p e r a tin g L os s ( A M T N O L ) D e d u c tion........ 2 - 3 9
N O L S f or A M T P u r p os e s......................................... 2 - 4 0
L in e 2 1 , A lte r n a tiv e M in im u m T a x a b le I n c om e......................... 2 - 4 2
E x e m p tion A m ou n t a n d A M T ........................................... 2 - 4 2
L in e 2 2 , E x e m p tion A m ou n t....................................... 2 - 4 2
L in e 2 3 , L in e 2 1 M in u s L in e 2 2 .................................... 2 - 4 3
L in e 2 4 , C a lc u la tion of th e A c tu a l A M T ............................. 2 - 4 4
ivL in e 2 5 , A lte r n a tiv e M in im u m T a x F or e ig n T a x C r e d it ( A M T F T C ) ......... 2 - 4 4
L in e 2 6 , T e n ta tiv e M in im u m T a x ................................... 2 - 4 6
L in e 2 7....................................................... 2 - 4 6
L in e 2 8 , A lte r n a tiv e M in im u m T a x .................................. 2 - 4 8
Chapter 3, Other Provisions that Affect AMT .................................... 3-1
K id d ie T a x .......................................................... 3 - 1
P a r tn e r s h ip a n d S - C or p or a tion F low - T h r ou g h s ............................... 3 - 6
At-Risk Rules and Basis Limitations ....................................... 3-6
E s tim a te d T a x P a y m e n ts ................................................ 3 - 6
S h or t T a x Y e a r s 3 - 7
R e s tr ic te d C on s e n ts a n d A M T ............................................ 3 - 7
Chapter 4, Minimum Tax Credit .............................................. 4-1
M in im u m T a x C r e d it/ G e n e r a l R u le s ........................................ 4 - 1
M in im u m T a x C r e d it N e t O p e r a tin g L os s ( M T C N O L ) ......................... 4 - 4
M in im u m T a x C r e d it a n d A M T F or e ig n T a x C r e d it ............................ 4 - 4
Special Rules Relating to Regular Tax Credits from Nonconventional Fuel Sources,
O r p h a n D r u g C r e d it a n d Q u a lifie d E le c tr ic V e h ic le C r e d it ................. 4 - 4
C om p u tin g th e M in im u m T a x C r e d it ....................................... 4 - 5
Chapter 5, Prior Law ....................................................... 5-1
P e r s on a l E x e m p tion s ................................................... 5 - 1
P e r s on a l I n te r e s t ...................................................... 5 - 1
I n v e s tm e n t I n te r e s t .................................................... 5 - 2
P a s s iv e A c tiv itie s ..................................................... 5 - 2
C h a r ita b le C on tr ib u tion s ................................................ 5 - 3
Intangible Drilling Costs (IDC) ........................................... 5-5
E n e r g y P r e fe r e n c e D e d u c tion ............................................ 5 - 5
L on g - te r m C on tr a c ts ................................................... 5 - 8
R e s e a r c h a n d E x p e r im e n ta l .............................................. 5 - 9
vD e p le tion E x p e n s e ................................................... 5 - 1 0
A lte r n a tiv e T a x N e t O p e r a tin g L os s ...................................... 5 - 1 0
A M T E x e m p tion s .................................................... 5 - 1 0
P e r c e n ta g e A p p lie d W h e n A r r iv in g a t T e n ta tiv e A M T ......................... 5 - 1 0
M in im u m T a x C r e d it .................................................. 5 - 1 1
K id d ie T a x ......................................................... 5 - 1 1
viChapter 1
Introduction
A Brief History of Alternative Minimum Tax
Taxpayers who are not required to pay tax under the regular tax system may still be liable
for tax under the Alternative Minimum Tax (AMT) laws. These laws create an equity in
the system, requiring higher income