In 2017 Sandy Jennings an individual has alternative minimum

In 2017, Sandy Jennings, an individual, has alternative minimum taxable income (AMTI) of $10 million. What is the maximum amount of alternative tax net operating loss from 2015 that can reduce AMTI?

a) $0

b) $1 million

c) $9 million

d) $10 million

Solution

The amount of alternate tax net operating loss that can be deducted when calculating AMT income cannot exceed 90% of the obligation. Thus ATNOL is option C, $ 9 million