Noncorporate Alternative Minimum Tax (Portfolio 587)

Description

Tax Management Portfolio, Noncorporate Alternative Minimum Tax, No. 587, analyzes the alternative minimum tax (AMT) applicable to taxpayers other than corporations.

The AMT is a separate federal income tax system that runs parallel to the regular federal income tax system. Although the minimum tax provisions have been amended several times since the concept of a minimum tax was first introduced, the underlying purpose of the AMT provisions has always been to ensure that taxpayers with substantial economic income pay a minimum amount of federal income tax.

This Portfolio discusses the general applicability of the noncorporate AMT. The Portfolio analyzes the interaction of the AMT with the regular tax; the computation of AMT liability, including the adjustments (§§56 and 58) and items of tax preference (§57) used in determining the amount of alternative minimum taxable income (AMTI); the use of nonrefundable credits against regular tax; the minimum tax credit; and collateral tax issues that arise under the AMT.

Table of Contents

I. Overview
II. Computation of AMTI
III. Computation of AMT
IV. Use of Nonrefundable Credits Against Regular Tax
V. Minimum Tax Credit
VI. Collateral Issues