CA AMTI Exclusion - Spidell

CA AMTI Exclusion

Log in to Post

Message Board CA AMTI Exclusion

  • This topic has 2 replies, 2 voices, and was last updated 1 week, 2 days ago by Robert Sternshein.
Viewing 2 reply threads
  • Author
    Posts
    • #323990
      Robert Sternshein
      Participant

      What is the CA AMTI Exclusion for purposes of calculating AMT on CA Schedule P?

      ie what is this number supposed to be? (I do not understand the CA sch P instructions)

      I use Lacerte software and my client is a CA Resident who is a partner in a partnership.  #s below rounded

       

      Line 14 is $165,000  (AMT preference items – total)

      Line 15 of sch P is $3,000,000  (state taxable income)

      Line 16 of sch p is 0 (NOL deduction)

      Line 17 AMTI Exclusion is ($2,900,000)  (X) why is this reducing the taxable income since her gross receipts exceed $1,000,000

      Line 18 is a negative ($143,000)

      Line 19 and 21 is Alt. Min Taxable Income- total of above combined is $122,000

      <hr />

      I don’t see why the AMTI Exclusion is accounting for the entire net profit of about $2.9M.  I thought you can only exclude the profit if it were below $1M.

       

      Thank you, Larry

       

    • #323999
      Gerald Weiss
      Participant

      Yes not correct for aggregate gross receitps $1M or more. I would first check your K-1’s to verify the gross receipts on the CA K-1 or if not then on the 1065 K-1  box 20. If correct then call Lacerte.

    • #324362
      Robert Sternshein
      Participant

      Thank you Gerald,

      I spoke to Lacerte, who after a long conversation, said that if your Gross Receipts from your business exceeds $1,000,000, you must override the AMTI to be zero.  ie It will not report this correctly if you do not override this amount.  This is something that everyone should consider.  Keep in mind, I was using the 2020 program to calculate CA AMT for purposes of determining the difference between the Reg Tax and AMT in order to create a projection and how it interrelates with the Passthrough Entity Elective Tax.  The Rep at Lacerte said 2021 maybe reported differently.

Viewing 2 reply threads