Experts in Alternative Minimum Tax Calculations & Planning
AMT101 > AMT/Preference Items
- AMT Items / AMT Preference Items
What triggers the Alternative Minimum Tax?
AMT / Preference Items - complete listing with detailed explanations
- Medical and dental (Line 2) - Explanation
- Taxes from Schedule A - State, local, real estate, personal property, etc. (Line 3) - Explanation
- Home Mortgage Interest adjustment (Line 4) - Explanation
- Miscellaneous deductions from Schedule A (Line 5) - Explanation
- Standard deduction, if file Schedule L (Line 6) - Explanation
- State and local tax refund (Line 7) - Explanation
- Investment Interest expense (Line 8) - Explanation
- Depletion (Line 9) - Explanation
- Net Operating Loss Deduction (Line 10) - Explanation
- Alternative tax net operating loss deduction (Line 11) - Explanation
- Interest from specified private activity bonds (Line 12) - Explanation
- Qualified small business stock (Line 13) - Explanation
- Incentive stock options exercised (Line 14) - Explanation
- Estates and trusts (Line 15) - Explanation
- Electing large partnerships (Line 16) - Explanation
- Disposition of property (Line 17) - Explanation
- Depreciation on assets place in service after 1986 (Line 18) - Explanation
- Passive activities (Line 19) - Explanation
- Loss limitations (Line 20) - Explanation
- Circulation costs (Line 21) - Explanation
- Long-term contracts (Line 22) - Explanation
- Mining costs (Line 23) - Explanation
- Research and experimental costs (Line 24) - Explanation
- Income from certain Installment sales (Line 25) - Explanation
- Intangible drilling costs (Line 26) - Explanation
- Other adjustments, included income-based related adjustments (Line 27) - Explanation
- Married filing separately special adjustment - Explanation
- Personal Exemptions - Explanation
What triggers the AMT?
The AMT preference items above are the only items that trigger the AMT because they are treated differently for AMT calculation purposes as compared to the Regular Tax. Your best step to uncover and understand these trigger items is to evaluate your last tax return and specifically the Form 6251 - Alternative Minimum Tax, Individuals. This can be confusing, difficult and/or time consuming. AMTIndividual Deluxe is an online AMT calculator and planner that...
- Evaluates last year's tax return and reveals what exactly caused you to pay AMT, the items that triggered the AMT
- Accurately predicts whether you'll have to pay the AMT and how much it will be
- Analyzes your financial situation and recommends ways you can reduce or avoid paying AMT
- Helps you quickly run "what if" scenarios to make decisions that result in the lowest overall tax
