What is Corporate alternative minimum tax?
In short
The corporate alternative minimum tax is a 15% minimum tax on adjusted financial statement income (book income with certain adjustments), applying to corporations whose average annual adjusted financial statement income over three years exceeds $1 billion.
Key takeaways
- The corporation pays the greater of its regular tax and the minimum tax.
- Minimum tax paid creates a credit that can reduce regular tax in later years.
- It has applied to tax years beginning after 2022.
Where it's tested
REG: C Corporation Taxation — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A corporation owns 30% of the stock of another domestic corporation and receives a $100,000 dividend. Ignoring the taxable income limitation, what is the dividends-received deduction?