Ralph earned income of $200,000, but since most of it was from the sale of small...

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Ralph earned income of $200,000, but since most of it was from the sale of small business shares, Ralph's taxable income was $10,000. Ralph is upset that he had to pay alternative minimum tax (AMT). What might you say to Ralph to ease the frustration? Ralph earned income of $200,000, but since most of it was from the sale of small business shares, Ralph's taxable income was $10,000. Ralph is upset that he had to pay alternative minimum tax (AMT). What might you say to Ralph to ease the frustration?

Answer rating: 100% (QA)

Explain the purpose of AMT The AMT is designed to ensure that everyone pays a minimum amount of tax ... View the full answer