Could Your Corporation Be Subject to the Corporate AMT?

Individuals aren’t the only ones potentially liable for an alternative minimum tax (AMT). The corporate AMT (CAMT) is a 15% minimum tax on corporations’ adjusted financial statement income (ADSI). In general, it can apply to C corporations with over $1 billion average annual ADSI over the three-year period ending with the tax year. If a multinational parent owns the corporation, the rules are more complicated. Determining whether a company is subject to the CAMT is complex, but a safe harbor requiring fewer income adjustments is available for certain corporations with average annual ADSIs of $800 million or less.