Alternative Minimum Tax - Sample Questions 1 - 5
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
Mutual Funds & ETFsExplore detailed analysis and information of the top three Swiss exchange-traded funds that offer exposure to the Swiss equities market.
SavingsWomen's risk aversion, penchant for research – and lack of male-style "irrational exuberance" – means their investing strategies often put them ahead.
Investing BasicsRisk-adjusted return is a measurement of risk for an investment or portfolio.
Investing BasicsBuying below the margin of safety minimizes the risk to the investor.
Mutual Funds & ETFsFind out about the PowerShares S&P 500 Downside Hedged ETF, and learn detailed information about characteristics, suitability and recommendations of it.
Mutual Funds & ETFsFind out about the Guggenheim Enhanced Short Duration ETF, and learn detailed information about this fund that focuses on fixed-income securities.
Mutual Funds & ETFsFind out about the Shares Morningstar Small-Cap Value ETF, and learn detailed information about this exchange-traded fund that focuses on small-cap equities.
Mutual Funds & ETFsFind out about the iShares MSCI KLD 400 Social exchange-traded fund, and learn detailed information about its characteristics, suitability and recommendations.
Mutual Funds & ETFsFind out about the Guggenheim BulletShares 2018 High Yield Corporate Bond ETF, and get information about this ETF that focuses on high-yield corporate bonds.
Mutual Funds & ETFsFind out about the PowerShares DWA SmallCap Momentum Portfolio ETF, and explore detailed analysis the fund's characteristics, suitability and recommendations.
The amount of risk that an insurance company retains after subtracting ...
Coverage that provides financial protection to investors, financial ...
The maximum loss from a peak to a trough of a portfolio, before ...
The absolute level of a fund's investments.
A technique used by insurance companies to calculate loss reserves.
The financial benefit that a risk-taking activity will bring ...
The Federal Deposit Insurance Corporation, or FDIC, is a government-run agency that provides protection against losses if ... Read Full Answer >>
The rise of index trading may increase the overall vulnerability of the stock market due to increased correlations between ... Read Full Answer >>
The term delta refers to the change in price of an underlying stock or exchange-traded fund (ETF) as compared to the corresponding ... Read Full Answer >>
An investor who is overweight in a particular sector risks a loss in value for the portfolio if there is a downturn in that ... Read Full Answer >>
The retail sector consists of companies operating in multiple industries such as specialty retail, general retail, food and ... Read Full Answer >>
Like all equity investments, insurance companies present investors with market risk. Insurance companies, like banks, also ... Read Full Answer >>