Which of the following statements concerning the Alternative Minimum Tax (AMT) system is correct?
- There is an unlimited carryforward for AMT credit generated in a year the taxpayer becomes an AMT taxpayer.
- Exclusion items for AMT purposes mayExclusion items for AMT purposes may be reversed in future tax years. be reversed in future tax years.
- Deferral items for AMT purposes result in a permanent increase in tax.
- The AMT credit can be carried back for up to two years, provided that use of the credit does not force the taxpayer to become an AMT taxpayer in those years.
Which of the following statements is true?
I. Capital for a sole proprietorship is limited to the resources of the proprietor including the proprietor's ability to borrow.
II. The use of discounts to value family limited partnership interests does not expose the owners of those interests to any risk.
III. Compensation paid to owner/employees of an S corporation is generally considered self-employment income.