Asked by e
Does California levy on alternative minimum tax if tentative minimum taxis greater than regular tax
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Yes. California imposes an alternative minimum tax (AMT) when your California tentative minimum tax (computed under CA AMT rules) exceeds your regular California tax. The AMT you owe is the excess (tentative minimum tax minus regular tax).
Quick summary of the process:
- Compute California alternative minimum taxable income (AMTI) using CA-specific adjustments and the AMT exemption.
- Compute the California tentative minimum tax on that AMTI.
- Compare tentative minimum tax to your regular California tax. If tentative minimum tax > regular tax, you pay the difference as California AMT; if not, you owe no AMT.
For individuals the calculations are done on Schedule P (Form 540) and instructions on the California Franchise Tax Board website. If you want, tell me your numbers and I can walk through the computation.
Quick summary of the process:
- Compute California alternative minimum taxable income (AMTI) using CA-specific adjustments and the AMT exemption.
- Compute the California tentative minimum tax on that AMTI.
- Compare tentative minimum tax to your regular California tax. If tentative minimum tax > regular tax, you pay the difference as California AMT; if not, you owe no AMT.
For individuals the calculations are done on Schedule P (Form 540) and instructions on the California Franchise Tax Board website. If you want, tell me your numbers and I can walk through the computation.
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