- 16 -
statutes. See S. Rept. 99-313, at 518 (1986), 1986-3 C.B. (Vol.
3) 1, 518. The AMT provisions accomplish this goal by
eliminating favorable treatment given to certain items for
purposes of the regular income tax. See secs. 55(b)(2), 56, 57,
and 58.
Pursuant to section 55(a), the AMT is applicable only if,
and to the extent that, the “tentative minimum tax” exceeds the
taxpayer’s “regular tax”.5 The starting point in computing the
AMT liability is determining the alternative minimum taxable
income (AMTI), which equals the taxpayer’s taxable income for the
year with the adjustments provided in sections 56 and 58, and
increased by the amount of tax preference items set forth in
section 57. To determine the taxable amount of AMTI, the AMTI is
reduced by an exemption amount, which for taxpayers filing a
joint return is $45,000, subject to a gradual phaseout of the
exemption amount as AMTI exceeds $150,000. See sec. 55(d)(1),
(3). The applicable AMT rates are then applied to the AMTI, as
reduced by the exemption amount, to determine the tentative
minimum tax (TMT). See sec. 55(b). For taxpayers reporting
capital gains on Form 1040, the TMT is the lesser of (1) the
amount of AMT determined without regard for section 55(b)(3), or
5 For petitioners, “the term ‘regular tax’ means the
regular tax liability for the taxable year (as defined in sec.
26(b)).” Sec. 55(c)(1).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011