Violet Corporation, a C corporation in the 34% tax bracket, will be subject to the AMT this year. Armen, Violet's president, has heard that it can be advantageous to accelerate income and defer deductions to a tax year in which the taxpayer is subject to the AMT. He wonders about the logic of doing this because it would increase Violet's total Federal income tax liability. Violet does not expect to be subject to the AMT next year, but will remain in the 34% bracket. Clarify this planning approach for Armen.

  • CreatedSeptember 09, 2015
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