AMTI- has adjustments and preferences. adjustments can be broken down into two categories, 1: “timing differences” & “add-backs” – in becker the timing differences use mnemonic “panic” and the add backs are called “timme” (still on adjustments, not preferences). “Panic” can be added or subtracted from from AMTI because they are timing differences. “Timme” will always be an increase AMTI.
You mentioned itemized deductions – this is the “timme” – the “add backs” (always going to increase regular taxable income, because of course…that is the base for AMTI.
T- Taxable refunds are added back. a state refund that was a deduction from your reg tax is added back – it isnt allowed for AMTI purposed
I – interest on home equity loan – for reg tax purposes we can deduct up to 100,000 regardless of what we use the money on. for AMTI , if it is not used to buy/build/improve qualified residence, it will be added back.
M – Medical expenses, must be in excess of 10% AGI – idk i have to look this up more haha
M- Misc deductions – normally we can add all our reg misc deductions that are subject to 2% threshold and if it above 2% of AGI we can deduct it. NOT so for AMTI, it is not allowed..so add it back
E- Exemptions and std deductions- not allowed, add them back too
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