Corporate AMT vs. AMT for Individuals?

  • Creator
    Topic
  • #184492
    Tasia
    Member

    Am I correct in my understanding that individual AMT carryforwards offset future AMT liability only (never regular tax liability), and corporate AMT carryforwards offset regular tax liability?

    BEC - 78 (8/30/13)
    REG - 73 (1/31/14) - 76 (4/7/14)
    ***GETTING MARRIED 7/19/14***
    FAR - after the wedding
    AUD - also after the wedding

    "For I know the plans I have for you,ā€ declares the LORD, ā€œplans to prosper you and not to harm you, plans to give you hope and a future." - Jeremiah 29:11

Viewing 10 replies - 1 through 10 (of 10 total)
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  • #539050
    TargetCPA
    Participant

    AMT is only credited against regular taxes arising in later years as a result of reversal of income differences. The AMT credit can be used to decrease regular tax liability in a later tax year.

    I think, non refundable personal credits such as dependent care credit, credit for the elderly and disabled, hope & lifetime credits are allowed to offset both AMT and regular tax liability.

    If I am wrong, please correct me.

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC-78(Expired),68,71,69,74
    REG-Waiting for score
    AUD-
    FAR-
    #539079
    TargetCPA
    Participant

    AMT is only credited against regular taxes arising in later years as a result of reversal of income differences. The AMT credit can be used to decrease regular tax liability in a later tax year.

    I think, non refundable personal credits such as dependent care credit, credit for the elderly and disabled, hope & lifetime credits are allowed to offset both AMT and regular tax liability.

    If I am wrong, please correct me.

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC-78(Expired),68,71,69,74
    REG-Waiting for score
    AUD-
    FAR-
    #539052
    Tasia
    Member

    You are right. I remembered the wrong thing from my notes. AMT paid can only offset future regular tax, not future AMT liability. Thank you for your help!

    BEC - 78 (8/30/13)
    REG - 73 (1/31/14) - 76 (4/7/14)
    ***GETTING MARRIED 7/19/14***
    FAR - after the wedding
    AUD - also after the wedding

    "For I know the plans I have for you,ā€ declares the LORD, ā€œplans to prosper you and not to harm you, plans to give you hope and a future." - Jeremiah 29:11

    #539081
    Tasia
    Member

    You are right. I remembered the wrong thing from my notes. AMT paid can only offset future regular tax, not future AMT liability. Thank you for your help!

    BEC - 78 (8/30/13)
    REG - 73 (1/31/14) - 76 (4/7/14)
    ***GETTING MARRIED 7/19/14***
    FAR - after the wedding
    AUD - also after the wedding

    "For I know the plans I have for you,ā€ declares the LORD, ā€œplans to prosper you and not to harm you, plans to give you hope and a future." - Jeremiah 29:11

    #539054
    CPA soon
    Member

    I am trying to remember, don't you also get the AMT carryforward refunded back if it doesn't have an offset by the 3rd taxable year following? Is that a rule or I just have things mixed up in my head lol?

    FAR - 71, 68, 74, (8/31/14) 78 āœ”
    REG - 67, 71, 71, (10/18/14) 78 āœ”
    BEC - (11/29/14) 86 āœ”
    AUD - 73, (4/4/15) 86 āœ”

    I can't believe this is over! 2 years and 3 months..

    #539083
    CPA soon
    Member

    I am trying to remember, don't you also get the AMT carryforward refunded back if it doesn't have an offset by the 3rd taxable year following? Is that a rule or I just have things mixed up in my head lol?

    FAR - 71, 68, 74, (8/31/14) 78 āœ”
    REG - 67, 71, 71, (10/18/14) 78 āœ”
    BEC - (11/29/14) 86 āœ”
    AUD - 73, (4/4/15) 86 āœ”

    I can't believe this is over! 2 years and 3 months..

    #539056
    TargetCPA
    Participant

    I think, Unused AMT credit carries over for an unlimited number of years.

    Please correct me, if I am missing any piece of information

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC-78(Expired),68,71,69,74
    REG-Waiting for score
    AUD-
    FAR-
    #539085
    TargetCPA
    Participant

    I think, Unused AMT credit carries over for an unlimited number of years.

    Please correct me, if I am missing any piece of information

    AUD - NINJA in Training
    BEC - NINJA in Training
    FAR - NINJA in Training
    REG - NINJA in Training
    BEC-78(Expired),68,71,69,74
    REG-Waiting for score
    AUD-
    FAR-
    #539058
    CPA soon
    Member

    I just referred back to the book, and this is what it said:

    C. AMT Credit

    1. If a taxpayer pays altemative minimum tax, a credit against future regular tax is granted for the

    amount of altemative minimum tax paid (with some exceptions). The carryforward of this credit

    is indefinite.

    2. Generally, each year, the greater of $5,000 or 20% of long-term (>3 years) unused minimum

    tax credit may be refundable.

    It's kind of confusing. Not sure how to read this…

    FAR - 71, 68, 74, (8/31/14) 78 āœ”
    REG - 67, 71, 71, (10/18/14) 78 āœ”
    BEC - (11/29/14) 86 āœ”
    AUD - 73, (4/4/15) 86 āœ”

    I can't believe this is over! 2 years and 3 months..

    #539087
    CPA soon
    Member

    I just referred back to the book, and this is what it said:

    C. AMT Credit

    1. If a taxpayer pays altemative minimum tax, a credit against future regular tax is granted for the

    amount of altemative minimum tax paid (with some exceptions). The carryforward of this credit

    is indefinite.

    2. Generally, each year, the greater of $5,000 or 20% of long-term (>3 years) unused minimum

    tax credit may be refundable.

    It's kind of confusing. Not sure how to read this…

    FAR - 71, 68, 74, (8/31/14) 78 āœ”
    REG - 67, 71, 71, (10/18/14) 78 āœ”
    BEC - (11/29/14) 86 āœ”
    AUD - 73, (4/4/15) 86 āœ”

    I can't believe this is over! 2 years and 3 months..

Viewing 10 replies - 1 through 10 (of 10 total)
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