uestion 1. If the regular income tax deduction for medical expenses is $0,

1. If the regular income tax deduction for medical expenses is $0, under certain circumstances the AMT deduction for medical expenses can be greater than $0.

a. True

b. False

2. The amount of the deduction for medical expenses under the regular income tax may be different than for AMT purposes if the taxpayer is at least age 65.

a. True

b. False

3. Kerri, who had AGI of $120,000, itemized her deductions in the current year. She incurred unreimbursed employee business expenses of $8,500. Kerri must make a positive AMT adjustment of $2,400 in computing AMT.

a. True

b. False

4. Interest on a home equity loan cannotbe deducted for AMT purposes.

a. True

b. False

5. The deduction for personal and dependency exemptions is allowed for regular income tax purposes, but is disallowed for AMT purposes. This results in a positive AMT adjustment.

a. True

b. False

6. Kay had percentage depletion of $119,000 for the current year for regular income tax purposes. Cost depletion was $60,000. Her basis in the property was $90,000 at the beginning of the current year. Kay must treat the percentage depletion deducted in excess of cost depletion, or $59,000, as a tax preference in computing AMTI.

a. True

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