AMTI: Alternative Minimum Tax (Calculation of Income) (2024)
Minnesota · Minnesota DOR · Used for tax years 2024
Minnesota’s 2024 Schedule AMTI calculates a corporation’s alternative minimum taxable income. It combines Minnesota net income with tax adjustments and preferences, accounts for the exemption and nonapportionable income, and provides the amount to enter on Form AMTT.
Who files this form
For tax year 2024, you must file Schedule AMTI if your corporation is not in an exempt category below and its Minnesota net income from Form M4I, line 7, plus adjustments and tax preferences, including adjusted current earnings, exceeds $40,000 or its allowable exemption amount.
The following are not subject to alternative minimum tax and do not need to complete AMTI:
- Regulated investment companies (RICs)
- Real estate investment trusts (REITs)
- Real estate mortgage investment conduits (REMICs)
- Cooperatives
- Small corporations exempt from federal AMT under IRC section 55(e), as amended through December 16, 2016
Unitary businesses complete only one Schedule AMTI.
What you'll need
Have these forms and records available to complete Schedule AMTI:
- Form M4I: Use Minnesota net income from line 7 and total nonapportionable income from line 8.
- Corporation identification: Provide the corporation or designated filer's name, FEIN, and Minnesota Tax ID number.
- Adjusted Current Earnings (ACE) Worksheet: Transfer its line 9 amount to Schedule AMTI, line 4a. Keep the worksheet for your records.
- Prior-year ACE adjustment records: These support the limitation on line 4d. Keep records from year to year, even for years when no AMT is owed.
- Records for applicable adjustments: These may include depreciation, amortization, property gains and losses, and losses carried forward for both regular tax and AMT.
- Applicable Schedule K-1 information: The instructions identify Schedule K-1 (Form 1041), Part III, box 12, and Schedule K-1 (Form 1065-B), boxes 5 and 6, for certain adjustments.
Common mistakes
- Not rounding amounts: You must round to the nearest whole dollar.
- Leaving line 4d empty: You must enter an amount, even if line 4b is positive.
- Counting an adjustment twice: Do not include an adjustment or preference already counted on line 2i, 2j, 2k, or 2m on another line.
- Putting certain depreciation adjustments on line 2a: Tax shelter farm activity adjustments belong on line 2i, passive activity adjustments on line 2j, and adjustments for the specified at-risk or basis-limited activities on line 2k.
- Not keeping ACE records: Keep adequate records of prior-year ACE adjustments even in years when the corporation owes no AMT.
- Using a disallowed negative ACE adjustment in another year: A negative ACE adjustment disallowed by the line 4d limit cannot reduce a positive ACE adjustment in another tax year.
Questions people ask
Where does the final AMTI amount go?
Enter Schedule AMTI, line 9, on AMTT, line 1.
How is the exemption calculated?
If line 5 is zero or less, or $310,000 or more, skip lines 6a and 6b and leave line 6 blank. If line 5 is greater than zero but less than $310,000, subtract $150,000 on line 6a, leaving it blank if the result is zero or less. Multiply line 6a by 25% on line 6b, then subtract line 6b from $40,000 to determine the line 6 exemption.
What if the return covers less than 12 months?
AMTI must be annualized, and tentative minimum tax must be prorated based on the number of months in the short period. Follow the short-period steps, which adjust the amounts entered on lines 5 and 7.
Do I need to keep the ACE Worksheet?
Yes. The worksheet says to keep it for your records. Its line 9 result also goes on Schedule AMTI, line 4a.