Final Exam > Results Page
final exam score:
80%
Question 1
Correct
For 2011, the AMT exemption amount for a single taxpayer is:
$35,475
$47,950
(You Answered) (Correct Answer) $48,450
$33,750
Question 2
Correct
The AMT is figured on which of the following forms?
Form 1040
Form 4562
(You Answered) (Correct Answer) Form 6251
Form 8801
Question 3
Correct
The top tax rate for AMT is:
26 percent
(You Answered) (Correct Answer) 28 percent
35 percent
24 percent
Question 4
Incorrect
Taxpayers with medical expenses can avoid an AMT adjustment for those expenses by doing all of the following except:
(Correct Answer) Deducting those expenses on Schedule A
Using a flexible spending arrangement
(You Answered) Using a health savings account
Using a medical reimbursement plan
Question 5
Correct
Which of the following statements is correct?
(You Answered) (Correct Answer) Interest on private activity bonds issued in 2011 is a tax preference item.
For incentive stock options, the stock price is an adjustment to AMTI.
An individual can opt to claim the standard deduction for regular tax purposes and itemize for the AMT.
State and local taxes are deductible to reduce AMTI
Question 6
Incorrect
The foreign tax credit may be used to offset how much of AMT liability in 2011?
0 percent
(You Answered) 90 percent
(Correct Answer) 100 percent
75 percent
Question 7
Correct
The minimum tax credit can be claimed for:
(You Answered) (Correct Answer) Deferral items only
Exclusion items only
Both exclusion and deferral items
Refundable credit items
Question 8
Correct
Which of the following statements is true regarding the exercise of incentive stock options?
The spread between the exercise price and the stock price is an addition to AMTI.
In planning for this AMT adjustment, it is highly recommended that employees exercise options early in the year.
To avoid the adjustment altogether, the employee can exercise the ISO and sell the stock simultaneously.
(You Answered) (Correct Answer) All of the above statements are true.
Question 9
Correct
Which of the following statements is incorrect?
For AMT purposes, an individual may deduct interest paid on a loan used to buy, build, or improve a principal residence or a second residence.
Home mortgage expense is not deductible for AMT purposes on a motor home or boat.
(You Answered) (Correct Answer) For AMT purposes, interest on home equity loans is always deductible.
For AMT purposes, 'qualified housing interest' is limited to indebtedness that is incurred in acquiring, constructing, or substantially improving the residence.
Question 10
Correct
Why are more and more taxpayers subject to the AMT?
The regular tax rates have decreased.
The AMT exemption amounts have not been indexed for inflation.
There is a lack of knowledge about the AMT.
(You Answered) (Correct Answer) All of the above