This question is a part of BIF's Special Webinar series which was created to help students affected by the July 2020 CFP® Exam postponement to September 2020.
Identify the strategy that a financial planner can implement if a taxpayer is subject to AMT in the current tax year:
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Correct answer: C. Both I and II
Instructor insight:
Optimal strategy would be to accelerate income into the AMT year and defer tax deductions to a regular tax year until the AMT liability equals the regular liability.
CFP® Exam insight:
Understand the Alternative Minimum Tax (AMT) basics.
The AMT system requires taxpayers to follow these steps: