Question

Bonnie, who is single and itemizes deductions, reports a zero taxable income for 2018. She incurs positive timing adjustments of $200,000 and AMT exclusion items of $100,000 for the year. What is Bonnie's AMT credit carryover to 2019?

Answer 1

Step-by-step explanation:

Bonnie's AMT credit carryover to next year would be $ 100,000. This is because Bonnie has zero taxable income but an AMT exclusion item of $ 100,000, tax would be paid on the AMT amount of $ 100,000 but the credit of which would be available in 2019 since Bonnie have sufficient timing adjustments of $ 200,000 which is higher that $ 100,000.