2012 Income Tax FAQ - 250

The most common items that can cause you to become subject to the AMT are listed below. These items must be added back to your taxable income in order to compute your AMT:

1. All personal exemptions.
   
   
2. The standard deduction, if you claimed it.
   
   
3. Itemized deductions for state and local income taxes, and real estate taxes.
   
   
4. Itemized deductions for home equity loan interest (this does not include interest on a loan to buy, build, or improve your home).
   
   
5. Itemized deductions for miscellaneous deductions.
   
   
6. Itemized deductions for any portion of medical expenses that exceed 7.5 percent of AGI, but not 10 percent of AGI.
   
   
7. Deductions you claimed for accelerated depreciation that exceed what you could have claimed under straight-line depreciation.
   
   
8. Differences between gain or loss on the sale of property for AMT purposes and for regular tax purposes; these differences most commonly occur as a result of the different depreciation methods required under AMT, as described above.
   
   
9. Addition of certain income from incentive stock options.
   
   
10. Changes in income from installment sales, since the installment sale method generally can't be used for AMT purposes.
    
    
11. Changes in certain passive activity loss deductions.
    
    
12. Deductions relating to oil and gas investments, or drilling or mining operations.
    
    
13. Interest on certain private activity bonds that would otherwise be tax-exempt.