IRS proposes regs on adjusted current earnings for the corporate AMT. (Internal Revenue Service, alternative minimum tax)

National Underwriter Life & Health-Financial Services Edition, September, 1990 by Repenning, Dennis A.

IRS Proposes Regs On Adjusted Current Earnings For The Corporate AMT

Regulations interpreting "ACE" - the adjusted current earnings computation for the corporate alternative minimum tax - have been proposed by the IRS.

The proposed regulations, which are to be effective for tax years beginning after 1989, are an effort to simplify the computation and to detail the treatment of life insurance under ACE. Prop. Reg. [sub section] 1.56 (g)-1, 1990-22 IRB 18.

Generally, under the alternative minimum tax scheme, corporate taxpayers increase alternative minimum taxable income (AMTI) by 75 percent of the amount that ACE exceeds pre-ACE AMTI before the alternative tax net operating loss deduction.

Insurance planners keep a wary eye on ACE...

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