Asked by Gabriela Goyo-D'Alessandro on May 01, 2024
Verified
Initially,corporations with average annual gross receipts for the last three years of $5 million or less are not subject to the corporate AMT rules.
Subject
In general terms, this refers to the main topic or entity being discussed or analyzed.
Corporate AMT
The Alternative Minimum Tax for corporations, designed to ensure that profitable companies pay at least a minimum amount of tax.
Average Annual Gross Receipts
The average amount of money received by a business before any deductions over a specified period, typically 3 to 5 years.
- Recognize the rules and exemptions related to the corporate alternative minimum tax (AMT).
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
This statement is true according to the current tax laws. Corporations with average annual gross receipts of $5 million or less are exempt from the corporate AMT rules. However, it's important to note that tax laws can change over time, so this may not always be the case in the future.
Learning Objectives
- Recognize the rules and exemptions related to the corporate alternative minimum tax (AMT).