1. The purpose of the AMT is to eventually replace the regular income tax entirely.

Group of answer choices

True

False

2. The individual alternative minimum tax liability may not exceed the regular tax liability of the taxpayer.

Group of answer choices

True

False

3. The alternative minimum tax must be paid only if the tentative minimum tax exceeds a taxpayer's regular tax liability.

Group of answer choices

True

False

4. If the tentative AMT exceeds the regular income tax liability by $41,000, the AMT is $41,000.

Group of answer choices

True

False

5. Which of the following itemized deductions may not be deducted in computing the individual alternative minimum tax?

Group of answer choices

A. Qualified home mortgage interest

B. State income taxes

C. Medical expenses (limited to 10 percent of AGI)

D. Charitable deductions

E. All of the above

6. Regular taxable income is the starting point for determining the alternative minimum tax.

Group of answer choices

True

False

7. The alternative minimum tax is the AMT base multiplied by the AMT rate.

Group of answer choices

True

False

8. Long-term capital gains are taxed at the stated AMT rate for purposes of the alternative minimum tax.

Group of answer choices

True

False

9. In 20X1, Maia (who files as a head of household) reported regular taxable income of $115,000. She itemized her deductions, deducting $8,000 in charitable contributions and $3,000 in state income taxes. What is Maia's alternative minimum taxable income?

Group of answer choices

A. $118,000

B. $115,000

C. $126,000

D. $123,000

10. The computation of the alternative minimum tax base begins with regular taxable income. Which of the following is not part of the formula for computing the alternative minimum tax base?

Group of answer choices

A. Subtract the AMT exemption amount (if any).

B. Add back tax-exempt interest from a private activity bond not issued in 2009 or 2010.

C. Subtract state income taxes paid.

D. Add the standard deduction amount if used for regular tax.

11. Which of the following items is not added back to regular taxable income in computing alternative minimum taxable income?

Group of answer choices

A. Tax-exempt interest from a private activity bond issued in 2007.

B. State income taxes.

C. Home mortgage interest expense.

D. Real property taxes.

12. Which of the following statements regarding the AMT exemption amounts is not true?

Group of answer choices

A. Taxpayers must choose whether they will claim the exemption or itemize deductions.

B. The amount of the exemption depends on the taxpayer's filing status.

C. The exemption amount is completely phased-out for high income taxpayers.

D. None of the above statements is false (all of the above statements are true).

13. Taxpayers are not allowed to deduct the standard deduction for alternative minimum tax purposes.

Group of answer choices

True

False

14. For alternative minimum tax purposes, taxpayers are allowed to deduct state income taxes but are not allowed to deduct charitable contributions.

Group of answer choices

True

False