Re: 2005 AMT Change Question


Arthur Kamlet wrote:
> In article <LKRxf.179$_c.65@xxxxxxxxxxxxxxxxxxxxxxx>,
> Richard Macdonald <ramcpaea@xxxxxxxxxxxxxxx> wrote:
> ><KEBSCHULLW@xxxxxxx> wrote in message
> >news:1137171980.798084.218450@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> >>
> >> Richard Macdonald wrote:
> >>> <KEBSCHULLW@xxxxxxx> wrote in message
> >>
> >> TOTAL TAX = TAX + ALTERNATIVE MINIMUM TAX + .....
> >
> >Yes and in years in which the regular tax exceeded the TAMT, it is regular
> >tax + 0 = regular tax which is still greater that TAMT, ergo, TAMT was paid
> >by the regular tax.
> >
> >> It is right there on Page 2 of Form 1040.
>
> The IRS chose to confuse the understanding of AMT here.
>
> Form 1040 Line 44 is Tax
> Line 45 is Alternative Minimum tax
> Line 46 Add lines 44 and 45
>
>
> So many people who read that Line 45 is AMT, believe Line 45 is AMT.
>
> It is the difference between the AMT and regualr tax, but not less
> than zero. It is the amount necesary to add to regular tax to
> arrive at AMT.
> --
>
> __
> Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH




Lil Paulie, Lil Dickie, and Lil' Artie:

How would the amount currently calculated for AMT using IRS
instructions change if the phrase "paragraphs (1), (2), or (3) of
section 164(a)" replaced "(A)(ii)" in section 56(b)(1)(D) of the IRC
so that the section read as indicated below???

Treatment of certain recoveries
No recovery of any tax to which paragraphs (1), (2), or (3) of section
164(a) applied shall be included in gross income for purposes of
determining alternative minimum taxable income.

? ? ?

One more time--

AMT = Tentative Minimum Tax - Tax
See Page 1 of Form 6251.

Total Tax = Tax + AMT - Total Credits + Other Taxes
See Page 2 of Form 1040

Lil Paulie previously responded<

Nope. Tax is the GREATER OF.....regular tax or AMT.

It is not (repeat NOT) tax + AMT.

Sorry Lil Paulie, you are wrong. See Form 1040, Page 2

Lil Dickie wrote:

Yes and in years in which the regular tax exceeded the TAMT, it is
regular
tax + 0 = regular tax which is still greater that TAMT, ergo, TAMT was
paid
by the regular tax.

Ergo, State Tax refunds are NOT includable for AMTI

Sorry Lil Dickie:

We are talking about AMT not Tentative Minimum Tax.

and then Lil' Artie wrote:

The IRS chose to confuse the understanding of AMT here.

Form 1040 Line 44 is Tax
Line 45 is Alternative Minimum tax
Line 46 Add lines 44 and 45

So many people who read that Line 45 is AMT, believe Line 45 is AMT.

It is the difference between the AMT and regualr tax, but not less
than zero. It is the amount necesary to add to regular tax to
arrive at AMT.

Sorry Lil' Artie:

AMT (Line 35, Form 6251) = Tentative Minimum Tax(Line 33, Form 6251)
- Tax (Line 34 on Form 6251).

The problem is that many have said "AMT" when they should have said
"Tentative Minimum Tax". When the amount on Line 34 of Form 6251 is 0
then the AMT is truly the Alternative Minimum Tax (without
consideration of some tax credits)

Now don't forget to answer the question posed above!

Cheers,

WDK

.

Relevant Pages

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