For many years preceding 2018, Minimis Corporation, a calendar year corporation, had incurred the alternative minimum tax (AMT) and as a result had a $2 million minimum tax carryover into 2018.  However, the Tax Cuts and Jobs Act of 2017 repealed the corporate AMT for tax years beginning after 2017.  Minimis expects its regular tax liability to be $100,000 per year for 2018, 2019, 2020, and 2021.  Your supervisor has asked you to determine how Minimis treats the minimum tax credit carryover in these four years now that the corporate AMT has been repealed.  Your supervisor has suggested that you start by looking at IRC Sec. 53.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  • For many years preceding 2018, Minimis Corporation, a calendar year corporation, had incurred the alternative minimum tax (AMT) and as a result had a $2 million minimum tax carryover into 2018.  However, the Tax Cuts and Jobs Act of 2017 repealed the corporate AMT for tax years beginning after 2017.  Minimis expects its regular tax liability to be $100,000 per year for 2018, 2019, 2020, and 2021.  Your supervisor has asked you to determine how Minimis treats the minimum tax credit carryover in these four years now that the corporate AMT has been repealed.  Your supervisor has suggested that you start by looking at IRC Sec. 53.
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Step 1

AMT has been repealed after the introduction of tax cuts and jobs act (TCJA) of 2017.

But those companies who have a credit or carry forward can claim under a condition.

They can claim 50% of AMT credit for each successive year after 2018.

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