Corporate AMT: Mastering Calculations, Carry-Forwards, ATNOLs and Basis Schedules

Description

Among the more complex aspects of corporate tax return preparation are the separate calculations that go into computing the corporate AMT.  The challenge goes well beyond merely calculating current year adjustments based on adjusted current earnings (ACE). Corporations must maintain separate schedules for net income, depreciation, alternate tax net operating loss (ATNOL), carry-forward amounts, and AMT credits against future years’ net income and AMT income (AMTI). 

Further complicating matters is the required redetermination of foreign tax credits under the AMT, with credits calculated against AMTI. AMT calculations also require adjustments to inventory, which also require maintaining separate inventory lists. In short, for businesses subject to the AMT, most tax preference items requiring timing adjustments will require separate schedules to reconcile taxable income with AMTI.

While the AMT is complex, there are planning opportunities to positively effect the timing of AMT. By keeping AMT schedules correct and current, corporate tax professionals can provide useful tools to company managers to lessen the tax impact of the AMT on a company’s bottom line.

Listen as our experienced panel provides a detailed roadmap to the separate calculations, schedules and carry-forwards required by the AMT.