Please someone help Fiduciary AMT Computations (LO. 1) The Perez Trust incurred
ID: 2498006 • Letter: P
Question
Please someone help
Fiduciary AMT Computations (LO. 1)
The Perez Trust incurred the following items this year.
Do not round intermediate computations. If required, round your final answer to the nearest dollar.
Perez does not hold any credits available to reduce the AMT liability. Perez's tentative minimum tax for the year is $ .
What is the tentative minimum tax??? I really need help, this is my third time posting this question because no one answered it fully. thank you
Taxable interest income $75,000 Tax-exempt interest income, not on private activity bonds 40,000 Tax-exempt interest income, on private activity bonds issued in 1999 20,000Explanation / Answer
Individuals with a higher income may be subject to the Alternative Minimum Tax.
The AMT exemption amount for trusts is $23,100.
Taxable income - $75,000
Tax-exempt interest income, not on private activity bonds $40,000
Net = $ 35,000
Tax-exempt interest income, on private activity bonds issued in 1999 = $20,000
Net = $15,000
Since the net taxable is less than the threshold limit. No AMT is payable