Under the Tax Cuts and Jobs Act of 2017, what happened to the corporate alternative minimum tax?

Under the Tax Cuts and Jobs Act of 2017, what happened to the corporate alternative minimum tax?

• A. It was expanded to more corporations.
• B. It was retained with higher thresholds.
• C. It was replaced with a different system.
• D. It was removed.

Answer: (D)

The main idea here is that the corporate alternative minimum tax was eliminated by the Tax Cuts and Jobs Act. Previously, corporate AMT required some companies to pay a minimum tax if their regular tax was reduced by deductions and credits. The TCJA repealed this mechanism starting in 2018, so there is no separate corporate AMT anymore. Corporations pay just the regular tax at the 21% rate, without an AMT calculation. The other options don’t fit because they describe expanding, retaining with higher thresholds, or replacing the AMT, none of which happened. Note that the individual AMT remains in place, separate from the corporate AMT.

The main idea here is that the corporate alternative minimum tax was eliminated by the Tax Cuts and Jobs Act. Previously, corporate AMT required some companies to pay a minimum tax if their regular tax was reduced by deductions and credits. The TCJA repealed this mechanism starting in 2018, so there is no separate corporate AMT anymore. Corporations pay just the regular tax at the 21% rate, without an AMT calculation. The other options don’t fit because they describe expanding, retaining with higher thresholds, or replacing the AMT, none of which happened. Note that the individual AMT remains in place, separate from the corporate AMT.