Foreign tax credit & AMT

[ED SMITH]

Client presented a 2006 TR with a foreign tax credit of $15K and an AMT of $10K.

We ran the numbers on our software and the AMT dropped to 0. The difference was how it was handled on form 6251.

His (HRB) took the FTC and subtracted it from line 44-1040 putting the result on Line 34-6251.
Ours (ATX) subtracted the FTC on Line 32.
It would seem that his is correct. Any comments?

[joanmcq]

Did the HRB return have an alt min 1116?

[ED SMITH]

Did the HRB return have an alt min 1116?

No! It seems to me that is what Line 32 is for - in which case ATX is wrong. BTW this is for TY2006.

[joanmcq]

How is the income being treated for Alt min vs regular tax; ie whether there is a difference to begin with. If there is not, check your input for the FTC and foreign income; you may have missed something there.