Question

For regular income tax purposes, a taxpayer may elect to amortize the cost of certified facilities over 60 months. For AMT purposes, such amortization is also allowed. a) True

b) False

Answer 1

The statement is true; taxpayers may amortize the cost of certified pollution control facilities over 60 months for both regular income tax and AMT purposes.

Step-by-step explanation:

For regular income tax purposes, a taxpayer may elect to amortize the cost of certified pollution control facilities over 60 months, which is also allowed for Alternative Minimum Tax (AMT) purposes. This statement is True. The Internal Revenue Code provides for specific amortization periods for various types of expenditures, and certified pollution control facilities can indeed be amortized over a 60-month period for both regular tax and AMT calculations. This enables taxpayers to recover the costs of such properties equally over a five-year period, and it aligns the regular tax treatment with AMT to prevent discrepancies that might otherwise arise between the two tax systems.