Are Form 1120 Schedule M 3 Gains 2019-2024

Hello, everyone! Today, I want to go over some basic KMT topics to help you pass the CPA exam. I understand that some tax professionals might find this explanation of AMT simplistic, but you don't need to be an expert to pass the regulation section of the CPA exam. You just need to be able to answer a few questions about AMT. You don't need to worry about complex calculations; just focus on understanding the basics of AMT and what items are added back to your taxable income for AMT purposes. For AMT, you start with your regular taxable income and then add back adjustments that were already removed from your adjusted gross income on Schedule A. Normally, you can deduct medical expenses in excess of 7.5% of your AGI on Schedule A. However, for AMT, the threshold moves to 10%, so any medical expenses that fall under the 10% threshold must be added back. If you deducted mortgage interest on your Schedule A that wasn't used for buying a home or improving it, you also have to add that back. The same goes for personal taxes like real estate tax, property tax, and state and local tax. Additionally, any deductions with a 2% threshold must be greater than 2% cumulatively to count for Schedule A and must be added back. For preference items, one important thing to remember for the CPA exam is that for real estate purchased after 1987, any difference between accelerated depreciation and straight-line depreciation must be added back. Furthermore, you cannot take a standard deduction for AMT, and no personal exemptions are allowed. These adjustments and preference items bring you to your alternative minimum taxable income (AMTI). From there, you subtract an exemption, but you don't need to memorize the exemptions for the exam. Subtracting the exemption brings you...