Form 8582 - MAGI - AMT v. Regular Tax

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Subject Author Date Form 8582 - MAGI - AMT v. Regular Tax MaximumRandB 08-15-2009  Re: Form 8582 - MAGI - AMT v. Regular Tax Alan 08-16-2009  Re: Form 8582 - MAGI - AMT v. Regular Tax D. Stussy 08-16-2009  Re: Form 8582 - MAGI - AMT v. Regular Tax Drew Edmundson 08-16-2009  Re: Form 8582 - MAGI - AMT v. Regular Tax MaximumRandB 08-16-2009  Re: Form 8582 - MAGI - AMT v. Regular Tax Arthur Kamlet 08-16-2009  Re: Form 8582 - MAGI - AMT v. Regular Tax MaximumRandB 08-18-2009
Posted by MaximumRandB on August 15, 2009, 10:45 pm Please log in for more thread options Is there any authority for the proposition that "modified adjusted gross income" (Form 8582, Line 7) can be different for regular tax and AMT? ProSeries seems to think so. However, Regs. Sec. 1.55-1 states, in pertinent part, that "...(i)n determining the alternative minimum taxable income of a taxpayer other than a corporation, all references to the taxpayer's adjusted gross income or modified adjusted gross income in determining the amount of items of income, exclusion, or deduction must be treated as references to the taxpayer's adjusted gross income or modified adjusted gross income as determined for regular tax purposes." Tom, EA in Chicago -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Alan on August 16, 2009, 12:39 am Please log in for more thread options MaximumRandB wrote: > Is there any authority for the proposition that "modified adjusted > gross income" (Form 8582, Line 7) can be different for regular tax and > AMT? Not as far as I know. If you look at the instructions for Line 19 and 20 of the 6251 you will see that there can be a difference in passive activity gains or losses. As such, you have to prepare a pro forma 8582 for AMT purposes. Could this be what ProSeries is doing? ProSeries seems to think so. However, Regs. Sec. 1.55-1 states, > in pertinent part, that "...(i)n determining the alternative minimum > taxable income of a taxpayer other than a corporation, all references > to the taxpayer's adjusted gross income or modified adjusted gross > income in determining the amount of items of income, exclusion, or > deduction must be treated as references to the taxpayer's adjusted > gross income or modified adjusted gross income as determined for > regular tax purposes." > > Tom, EA in Chicago > -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by D. Stussy on August 16, 2009, 1:20 am Please log in for more thread options > Is there any authority for the proposition that "modified adjusted > gross income" (Form 8582, Line 7) can be different for regular tax and > AMT? ProSeries seems to think so. However, Regs. Sec. 1.55-1 states, > in pertinent part, that "...(i)n determining the alternative minimum > taxable income of a taxpayer other than a corporation, all references > to the taxpayer's adjusted gross income or modified adjusted gross > income in determining the amount of items of income, exclusion, or > deduction must be treated as references to the taxpayer's adjusted > gross income or modified adjusted gross income as determined for > regular tax purposes." Depreciation differences - or any of the items listed on Form 6251 that are above the line.... -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Drew Edmundson on August 16, 2009, 8:02 pm Please log in for more thread options On Sat, 15 Aug 2009 22:45:06 EDT, MaximumRandB >Is there any authority for the proposition that "modified adjusted >gross income" (Form 8582, Line 7) can be different for regular tax and >AMT? ProSeries seems to think so. However, Regs. Sec. 1.55-1 states, >in pertinent part, that "...(i)n determining the alternative minimum >taxable income of a taxpayer other than a corporation, all references >to the taxpayer's adjusted gross income or modified adjusted gross >income in determining the amount of items of income, exclusion, or >deduction must be treated as references to the taxpayer's adjusted >gross income or modified adjusted gross income as determined for >regular tax purposes." ProSeries is wrong. MAGI is the same for regular and AMT purposes as you found in the regulation. I have tried several times to get intuit to fix the error. I hear that Lacerte, also by Intuit, uses the same MAGI for both regular and AMT purposes. Perhaps if we both complain, Intuit will fix it. Eternal optimist? Drew Edmundson, CPA Cary, NC -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by MaximumRandB on August 16, 2009, 8:55 pm Please log in for more thread options > Is there any authority for the proposition that "modified adjusted > gross income" (Form 8582, Line 7) can be different for regular tax and > AMT? This is a rough outline of the situation. T/P pays AMT. Active participation rental real estate activities. The "AMT Form 8582" properly shows a $1,000 rental loss on Line 1d, which properly includes AMT depreciation adjustments. No other passive activities. "Regular Tax MAGI" is $146,000. T/P has $4,000 private activity bond interest unrelated to the rental activity. ProSeries thinks that "AMT MAGI" is $150,000. Is the allowable AMT rental loss $1,000 or $0? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted form 2210 (regular method) and withholding February 12, 2009, 10:50 am MAGI for Saver's Credit February 6, 2007, 9:58 pm Roth 401K vs. "Regular" 401K? 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