What is the purpose of the alternative minimum tax and who paysit? How was...

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Accounting

What is the purpose of the alternative minimum tax and who paysit? How was the individual alternative minimum tax impacted by theDecember 2017 tax reform law?
Review available tax credits discussed in chapter 12 of thetext. Compare the tax credits that you actually take with the taxcredits you would like to take.
Explain why you made the particular selections.
For the tax credit(s) that you would like to take, explain whyyou are not able to take the tax credits(s).
For the tax credits that you actually take, explain the benefitsthat you receive from the tax credit(s).
If you have never prepared a tax return or looked at thisinformation before, what do you find most significant about theinformation that you read about tax credits?
How, if at all, were the tax credits that you take or would liketo take impacted by the December 2017 tax reform law?

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The substitute minimal Tax is a obligatory alternative to the typical income tax It will get triggered when taxpayers make greater than the exemption and use many customary itemized deductions The intent the AMT catches these in better tax brackets is because it eliminates lots of those deductions Thats the disturbing part in regards to the AMT If youre making more than the AMT exemption amount and use the deductions youve got to calculate your taxes twice That is as soon as for the normal sales tax and as soon as for the AMT To add insult to injury you might have then got to pay the higher tax invoice On December 22 2017 President Trump signed the Tax Cuts and Jobs Act It keeps the AMT however raises the exemption and phaseout phases from 2018 by means of 2025 Thus itll have an effect on 200000 tax filers rather of the 5 million affected in 2017 The invoice entails an automated price of dwelling adjustment Congress eliminated the AMT for establishments How the AMT Works The AMT is specific from the See Answer

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In: AccountingWhat is the purpose of the alternative minimum tax and who paysit? How was the...What is the purpose of the alternative minimum tax and who paysit? How was the individual alternative minimum tax impacted by theDecember 2017 tax reform law?Review available tax credits discussed in chapter 12 of thetext. Compare the tax credits that you actually take with the taxcredits you would like to take.Explain why you made the particular selections.For the tax credit(s) that you would like to take, explain whyyou are not able to take the tax credits(s).For the tax credits that you actually take, explain the benefitsthat you receive from the tax credit(s).If you have never prepared a tax return or looked at thisinformation before, what do you find most significant about theinformation that you read about tax credits?How, if at all, were the tax credits that you take or would liketo take impacted by the December 2017 tax reform law?