1. Which of the following is a common AMT adjustment:
The difference between the fair market value and exercise price of an incentive stock option.
Tax-exempt bond interest that is private activity bond interest.
The deduction for state and local taxes paid.
Two of the above.
2. The following describes the Alternative Minimum Tax Credit:
It may be used to offset the taxpayer’s regular tax liability.
It may be used to offset the taxpayer’s tentative minimum tax liability.
It allows the taxpayer a credit against his or her regular tax liability for AMT taxes paid as a result of a permanent adjustment or preference item.
The credit may be carried forward for five years.