Get 2010 Schedule P (541) -- Alternative Minimum Tax And Credit Limitations Fiduciaries. 2010

The AMT is the excess of the tentative minimum tax over the regular tax. Thus, the AMT is owed only if the tentative minimum tax for the year is greater than the regular tax for that year. The tentative minimum tax is figured separately from the regular tax.

= Alternative Minimum Tax A maximum exemption of $40,000 is allowed for each taxpayer. After being reduced by the exemption amount, AMTI is taxed at a 6.65% (8.65% for financials) rate to determine TMT. If the TMT exceeds the regular tax, the excess is the alternative minimum tax (AMT).

Incentive stock options, intangible drilling costs, tax-exempt interest from certain private activity bonds (PAB) and depletion and accelerated depreciation on certain leased personal or real property 2may all prompt the alternative minimum tax.

An individual's or married couple's income above the alternative minimum tax exemption amounts is what triggers the alternative minimum tax. This typically applies to higher earners. The AMT is 26% or 28%.

Fiduciaries must use Schedule P (541), Alternative Minimum Tax and Credit Limitations – Fiduciaries, to figure the following: Income distribution deduction on an AMT basis. Estate's or trust's alternative minimum taxable income (AMTI) Estate's or trust's AMT.

The alternative minimum tax (AMT) is an additional income tax imposed under the Income Tax Act (Canada) (the Act) on individuals and certain trusts who would otherwise be able to reduce their ordinary Canadian federal income tax through the use of certain deductions, exemptions or credits.

Taxpayers who have incomes that exceed the AMT exemption of $88,100 (single), $137,000 (married filing jointly) and $68,500 (married filing separately) in 2025 may be subject to the alternative minimum tax when they file their 2026 tax return. AMT tax rates are 26% or 28%.