Are Form 1120 Schedule M 3 Hedging 2019-2024

Let's see if we can shed some light on the alternative minimum tax, which is also one of the most confusing aspects of taxation in the US. Hopefully, this video will clarify things a little bit. So let's go back to the example from the first video of the person making $100,000. What I'm going to do is calculate the AMT (alternative minimum tax) for that person and then we'll see what happens from there. The alternative minimum tax applies if you make less than $300,000. The first $47,000 or so is exempt when calculating the AMT. For this person making $100,000, we just have to consider the balance above $47,450. A hundred thousand minus $47,450 would be $52,550. So, this amount right over here is going to be $52,550. The alternative minimum tax says that whatever you are above this exemption, you're just going to pay a flat 26 percent on that amount. If this person had made over $175,000, it would have been a flat 28 percent. But let's not go there. It just complicates things. For this person, they have to pay 26 percent of $52,550. That would be $13,663. So, the alternative minimum tax calculation would be $13,663. Now, you might be thinking that's not so bad. Do I pay this in addition to the $21,000 that we calculated in the first video? How does this work out? The answer is no. The IRS or your accountant would look at both of these numbers, and you would pay the higher of the two. In this situation, your regular taxes are higher than your alternative minimum tax, so you would just pay your regular taxes. The alternative minimum tax does come into play in situations where someone is making a ton of money. In general, it would be the larger...