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Alternative Minimum Tax (AMT Tax Preference Items (List of tax preference…

- - - - Certain tax-exempt private activity bonds
        Issued after 08/07/1986
        Except for bonds inssued in 2009 and 2010
    - - Excess from
        Depletion deduction - the adjusted basis of the property interest
        at the end of a tax year
      - Taxpayer = Not an independent oil and gas producer then,
    - - 7% of any gain which is excluded from gross income under Code Sec. 1202
      - Stock acquired before 09/28/2010 and if there is a
    - - If the cost exceeds 65% of the T/P's net income from oil, gas and geothermal properties then,
      - The amount allowed as a deduction - the amount that would've been deductible = tax preference item
        The amount that would've been = The costs had been capitalized and ratably amortized over a 120-moth period
      - Independent producer is not subject.
        However,
        
        Its AMTI may not be reduced by more than
        40% of of the AMTI determined by
        
        Taking the IDC tax pref. item into account and
        
        did not compute an alternative tax net operating loss deduction
    - - Real property
        Leased personal property
        Leased recovery property
        Polution control facilities
        Placed in service before 1987
      - To the extent that it was a preference item under prior law
      - Exception:
        If the T/P elected to apply the MACRS to the property for regular tax purposes
  - - - Exempt interest that is not a tax preference item
        
        qualified 501(c)(3) bonds,
        New York Liberty bonds,
        GO Zone bonds,
        Midwestern disaster area bonds, or
        Hurricane Ike disaster area bonds,
        as well as the following bonds issued after July 30, 2008:
        certain exempt facility bonds,
        qualified mortgage bonds, or
        qualified veterans' mortgage bonds.
        Additionally, exempt interest on private activity bonds issued in 2009 or 2010 is not treated as a tax preference item.
      - What is tax-exempt private activity bond?
        
        Private activity bonds (PAB) are tax-exempt bonds issued by or on behalf of a local or state government for the purpose of providing special financing benefits for qualified projects. The financing is most often for projects of a private user, and the government generally does not pledge its credit.