New refundable AMT Tax Credit

[Tom Phelan]

Does anyone feel like they understand this new credit?

I don't have any resource that clearly tells me whether this credit can be used by a taxpayer with a 2007 AMT liability. For example, let's say the regular tax is 50,000, and the AMT (assuming the increased exemption amount) is 70,000. If my taxpayer has an unused 100,000 AMT credit from 2003, can he use any of it for 2007?

I used to feel like I could read the code and eventually understand what it means, but I don't have easy access to the code (thanks CCH), and I can't find a good reference in my office or on the internet.

Any advice or citations beyond IRC Sec 53 would be greatly appreciated!

[TAXBILLY]

This website might help your research:

http://www.legalbitstream.com/

taxbilly

[kcjenkins]

Tthe minimum tax credit (MTC) allows taxpayers who have incurred AMT in one year to claim a credit against their regular tax in subsequent years. The MTC cannot be used to reduce AMT in those later years, but can be carried forward indefinitely to offset regular tax. Thus, it is not necessary to determine which prior year's MTC is being used in a particular year.

[Tom Phelan]

Tthe minimum tax credit (MTC) allows taxpayers who have incurred AMT in one year to claim a credit against their regular tax in subsequent years. The MTC cannot be used to reduce AMT in those later years, but can be carried forward indefinitely to offset regular tax. Thus, it is not necessary to determine which prior year's MTC is being used in a particular year.

Thanks, I think this is almost certainly correct, but the fact that they have modified the credit such that it can be used even in excess of the regular tax liability (i.e. refundable) made me wonder if it might also be used to offset the liability of a taxpayer who finds themselves in the AMT for 2007.