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When does a corporation owe Alternative Minimum Tax (AMT)?

A corporation owes AMT if its tentative minimum tax is more than its regular tax. 

However, some exceptions include small corporations for their current tax year if that year is the corporation’s first tax year in existence or if the corporation was treated as a small corporation exempt from AMT before 1997, or the average annual gross receipts for the 3-tax-year period ending before its current tax year did not exceed $7.5 million. 

A useful tool is Form 4626, Alternative Minimum Tax - Corporations, to find the tentative minimum tax of a corporation that is not a small corporation for AMT purposes. The exemption amount is $40,000 and the alternative minimum tax rate is 20%. 

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