More middle-class households falling into minimum tax trap
By Lorene Yue

TABLE OF CONTENTS

CHAPTER 1

• Introduction 1-1
• Current Years' AMT 1-2
• A Brief History of Alternative Minimum Tax 1-1

CHAPTER 2

• Line 9, Adjusted Gain or Loss 2-13
• Line 8, Post-1986 Depreciation 2-8
• Line 7, Investment Interest 2-7
• Line 6, Refund of Taxes 2-6
• Line 5, Miscellaneous Itemized Deductions 2-6
• Line 4, Interest on House Mortgage 2-5
• Line 3, Taxes 2-4
• Line 28, Alternative Minimum Tax 2-48
• Line 27 2-46
• Line 26, Tentative Minimum Tax 2-46
• Line 25, Alternative Minimum Tax Foreign Tax Credit (AMTFTC) 2-44
• Line 24, Calculation of the Actual AMT 2-44
• Line 23, Line 21 Minus Line 22 2-43
• Line 22, Exemption Figure 2-42
• Line 21, Alternative Minimum Assessable Financial gain 2-42 Exemption Figure and AMT 2-42
• Line 20, Alternative Tax Net Operational Loss (AMTNOL) Deduction 2-39 NOLS for AMT Purposes 2-40
• Line 2, Medical and Dental Expenses 2-3
• Line 19, Sum of Lines 15 through 18 2-39
• Line 18, Phased-out Itemized Deductions 2-38
• Line 17, Net Operational Loss (NOL) Deduction 2-38
• Line 16, Assessable Financial gain Before Personal Exemptions 2-38
• Line 15, Total Adjustments and Preferences 2-38
• Line 14n, Related Adjustments (For Tax Years 1993-1997; Line 14o for Tax Year 1998) 2-37
• Line 14m, Tax Shelter Farm Activities (For Tax Years 1994-1997)
• Line 14m, Section 1202 Exclusion (For Tax Year 1998) 2-37
• Line 14l, Research and Experimental Expenditures (For Tax Years 1994-1998)
• Line 14l for Tax Year 1993; Line 14n for Tax Year 1998) 2-36
• Line 14k, Pollution Control Facilities (For Tax Years 1994-1998; Line 14j for Tax Year 1993) 2-33
• Line 14k for Tax Year 1993)2-34
• Line 14j, Patron's Adjustment (For Tax Years 1994-1998) 2-33
• Line 14i, Mining Price 2-32
• Line 14h, Loss Limitations 2-31
• Line 14g, Long-term Contracts 2-29
• Line 14f, Large Partnerships (For Tax Year 1998) 2-29
• Line 14f, Intangible Drilling Price (For Tax Years 1993-1997)
• Line 14e, Installment Sales (For Tax Years 1993-1997)
• Line 14e for 1998) 2-26
• Line 14d, (Pre-1987) Depreciation (For Tax Years 1993-1997)
• Line 14d for Tax Year 1998) 2-26
• Line 14c, Depletion (For Tax Years 1993-1997)
• Line 14c for Tax Year 1998) 2-24
• Line 14b, Circulation Expenditures (For Tax Years 1993-1997)
• Line 14b for Tax Year 1998) 2-23
• Line 14a, Charitable Contributions (For Tax Years 1993-1997) 2-22
• Line 14a for Tax Year 1998) 2-22
• Line 13, Tax-exempt Interest from Private Work Bonds Issued after 8/7/86 2-20 Another Items of Adjustment and Tax Preference Items 2-22
• Line 12, Beneficiaries of Estates and Trusts 2-20
• Line 11, Passive Activities 2-16
• Line 10, Incentive Stock Options 2-14
• Line 1, Standard Deduction and Itemized Deductions 2-1
• Form 6251 Alternative Minimum Tax-Individuals 2-1
• Computing AMT 2-1
• Alternative Minimum Assessable Financial gain 2-38
• Adjustments and Preference Items 2-1

CHAPTER 3

• Short Tax Years 3-7
• Restricted Consents and AMT 3-7
• Partnership and S-Corporation Flow-Throughs 3-6
• Other Provisions that Affect AMT 3-1
• Kiddie Tax 3-1
• Estimated Tax Payments 3-6
• At-Risk Rules and Basis Limitations 3-6

CHAPTER 4

• Tax Credits from Nonconventional
• Special Rules Relating to Regular
• Minimum Tax Credit/General Rules 4-1
• Minimum Tax Credit and AMT
• Minimum Tax Credit Net Operational
• Minimum Tax Credit 4-1
• Loss (MTCNOL) 4-4
• Fuel Sources, Orphan Drug Credit and Qualified Electric Vehicle Credit 4-4
• Foreign Tax Credit 4-4
• Computing the Minimum Tax Credit 4-5

Chapter 5

• Research and Experimental 5-9
• Prior Law 5-1
• Personal Interest 5-1
• Personal Exemptions 5-1
• Passive Activities 5-2
• Long-term Contracts 5-8
• Investment Interest 5-2
• Intangible Drilling Price (IDC) 5-5
• Energy Preference Deduction 5-5
• Charitable Contributions 5-3

CHAPTER 6

• Percentage Applied Once Inbound at Tentative AMT 5-10
• Minimum Tax Credit 5-11
• Kiddie Tax 5-11
• Depletion Expense 5-10
• Alternative Tax Net Operational Loss 5-10
• AMT Exemptions 5-10