1. All of the following are AMT preference items EXCEPT:
A) Private purpose municipal bond interest
B) Percentage depletion
C) Public purpose municipal bond interest
D) Bargain element on the exercise of an incentive stock option
2. Which of the following is a valid planning tip to help a taxpayer avoid AMT?
A) Defer the exercise of incentive stock options
B) Invest in high dividend paying stocks
C) Buy private activity municipal bonds
D) File married filing separately for a higher exclusion amount
3. Which of the following are exempt from AMT liability?
II. C-Corporations in their first year of existence
III. Qualified Public Charities
IV. C-Corporation with less than $7,500,000 of gross receipts in their first year of existence will be exempt in year two.
A) I and II only
B) I and III only
C) I, II and III
D) I, II, III and IV
4. All of the following are true statements regarding AMT EXCEPT?
A) AMT tax rates are 26 and 28%.
B) Tax-exempt interest from a private activity bond is a preference item.
C) AMT liability is calculated on IRS Form 6251 for the individual tax filer.
D) Incentive stock options are considered an exclusion item.
5. All of the following are common "deferral items" EXCEPT?
B) Standard deduction
C) Intangible drilling costs
D) Incentive stock options
InvestingShould you worry about the AMT? Even if you're subject to it, there are exemptions and strategies for reducing your tax bill.
Personal FinanceLearn how refundable AMT credits can help you save on taxes, AMT bills and more.
Managing WealthConsidering muni bonds? Here's a look at their pros and cons.
Managing WealthThinking of diversifying with bonds? Consider these muni bond ETFs.
InvestingThat depends on the type of stock option you have. A rundown of the tax treatment for statutory and nonstatutory, or non-qualified, options.
ETFs & Mutual FundsLearn how the five most popular national municipal bond ETFs can generate income that is exempt from state taxes, as well as AMT in certain circumstances.
ETFs & Mutual FundsLearn about individual municipal securities and municipal bond funds, whose principal stability and tax-free yield appeal to high-income investors.
Managing WealthHere's how to tell if municipal bonds are a better investment than taxable bonds or CDs.
MarketsInvesting in these bonds may offer a tax-free income stream but they are not without risks.
ETFs & Mutual FundsUnderstand how the addition of municipal bond mutual funds can enhance a portfolio, and learn the top-rated municipal bond funds to consider for 2016.