Alternative Minimum Tax Exemption

§ 55. Alternative minimum tax imposed(a) General ruleThere is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to the excess (if any) of—(1) the tentative minimum tax for the taxable year, over (2) the regular tax for the taxable year plus, in the case of an applicable corporation, the tax imposed by section 59A. (b) Tentative minimum taxFor purposes of this part—(1) Noncorporate taxpayersIn the case of a taxpayer other than a corporation—(A) In generalThe tentative minimum tax for the taxable year is the sum of—(i) 26 percent of so much of the taxable excess as does not exceed $175,000, plus (ii) 28 percent of so much of the taxable excess as exceeds $175,000. The amount determined under the preceding sentence shall be reduced by the alternative minimum tax foreign tax credit for the taxable year. (B) Taxable excessFor purposes of this subsection, the term “taxable excess” means so much of the alternative minimum taxable income for the taxable year as exceeds the exemption amount. (C) Married individual filing separate returnIn the case of a married individual filing a separate return, subparagraph (A) shall be applied by substituting 50 percent of the dollar amount otherwise applicable under clause (i) and clause (ii) thereof. For purposes of the preceding sentence, marital status shall be determined under section 7703. (D) Alternative minimum taxable incomeThe term “alternative minimum taxable income” means the taxable income of the taxpayer for the taxable year—(i) determined with the adjustments provided in section 56 and section 58, and (ii) increased by the amount of the items of tax preference described in section 57.  If a taxpayer is subject to the regular tax, such taxpayer shall be subject to the tax imposed by this section (and, if the regular tax is determined by reference to an amount other than taxable income, such amount shall be treated as the taxable income of such taxpayer for purposes of the preceding sentence). (2) Corporations(A) Applicable corporationsIn the case of an applicable corporation, the tentative minimum tax for the taxable year shall be the excess of—(i) 15 percent of the adjusted financial statement income for the taxable year (as determined under section 56A), over (ii) the corporate AMT foreign tax credit for the taxable year. (B) Other corporationsIn the case of any corporation which is not an applicable corporation, the tentative minimum tax for the taxable year shall be zero. (3) Maximum rate of tax on net capital gain of noncorporate taxpayersThe amount determined under the first sentence of paragraph (1)(A) shall not exceed the sum of—(A) the amount determined under such first sentence computed at the rates and in the same manner as if this paragraph had not been enacted on the taxable excess reduced by the lesser of—(i) the net capital gain; or (ii) the sum of—(I) the adjusted net capital gain, plus (II) the unrecaptured section 1250 gain, plus