Complete the following statement regarding how the AMT could be calculated without using regular taxable income as a starting point.

Under a direct method, taxpayers would first calculate

gross incomeAGIitemized deductions

by

applying the regular taxable income rulesapplying the AMT rules

$.$ Next, deductions

allowed as itemized deductionsallowed per AMT rulesincluding a pro$-$rata amount of the standard deduction

are determined. This would equal the

AMTAMTIAMT base

$.$ Next,

the standard deductionthe AMT exemptionthe TMT

is deducted to determine the

AMT baseAMTITMT

$.$ This amount is multiplied by

the taxpayer's income tax ratethe taxpayer's AMT ratethe lesser of the taxpayer's income rate or the AMT rate

$.$