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Taxation problems

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Question;31. Use the following data to calculate Chiara?s 2012 AMT base. Chiara files as a single taxpayer.Taxable income $148,000Positive AMT adjustments 73,000Negative AMT adjustments 55,000AMT preferences 30,00034. Calculate the 2013 AMT exemption amount for the following cases for a single taxpayer, a married taxpayer filing jointly, and a married taxpayer filing separately.Case ? AMTI:1 - $150,0002 - 300,0003 - 800,00036. Angela, who is single, incurs circulation expenditures of $153,000 during 2013. She is in the process of deciding whether to expense the $153,000 or to capitalize it and elect to deduct it over a three-year period. Angela already knows that she will be subject to the AMT for 2013 at both the 26% and the 28% rates. Angela is in the 28% bracket for regular income tax purposes this year (she records regular taxable income of $153,000 before considering the circulation expenses). She expects to be in the 28% bracket in 2014 and 2015. Advise Angela on whether she should elect the three-year write-off rather than expensing the $153,000 in 2013.40. Geoff incurred $900,000 of mining and exploration expenditures. He elects to deduct the expenditures as quickly as the tax law allows for regular income tax purposes.a. How will Geoff?s treatment of mining and exploration expenditures affect his regular income tax and AMT computations for the year?b. How can Geoff avoid having AMT adjustments related to the mining and exploration expenditures?c. What factors should Geoff consider in deciding whether to deduct the expenditures in the year incurred?45. Freda acquired a passive activity this year for $870,000. Gross income from operations of the activity was $160,000. Operating expenses, not including depreciation, were 122,000. Regular income tax depreciation of $49,750 was computed under MACRS. AMT depreciation, computed under ADS, was $41,000. Compute Freda?s passive loss deduction and passive loss suspended for regular income tax purposes and for AMT purposes.

 

Paper#41475 | Written in 18-Jul-2015

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