US - Alternative Minimum Tax (AMT)

Presently, taxpayers are permitted to reduce their AMT liability by an AMT foreign tax credit.  Generally, the AMT foreign tax credit for any taxable year may not offset a taxpayer's entire pre-credit AMT.  Rather, the AMT foreign tax credit is limited to 90 percent of AMT, thereby resulting in a possible AMT of 10% of AMT income.

For taxation years beginning after December 31, 2004, the 90% limitation on the foreign tax credit claimed against AMT is being removed.


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