Which One of the Following Is Not a Tax Preference

question 43

Multiple Choice

Which one of the following is not a tax preference item used in computing the alternative minimum tax for an individual?

• A)Tax-exempt income from a Colorado Water Board bond
• B)Percentage depletion in excess of cost depletion on a silver mining property
• C)Tax-exempt interest on specified private activity bonds in tax years after 2012
• D)Exclusion of gain on the sale of certain qualified small business corporation stock in tax years after 2012
• E)None of the above; all are preference items.

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Definitions:

Mollusks

A diverse group of invertebrate animals with a soft body, many of which have a hard shell, including snails, clams, and squid.

Protonephridia

A type of excretory and osmoregulatory system found in some invertebrates, consisting of a network of tubules ending in flame cells.

Nephridia

Excretory organs in many invertebrates, such as annelids, functioning similarly to kidneys in vertebrates by removing waste materials.

Flatworms

A group of invertebrates belonging to the phylum Platyhelminthes, known for their flat bodies and absence of body cavity.