Which of the Following Could Explain Why Large Number of Taxpayers

question 55

Multiple Choice

Which of the following could explain why large number of taxpayers are subject to (or could become subject to) AMT?

• A) Regular tax rates have decreased since the AMT was enacted
• B) The AMT exemption amount is indexed to increase with inflation
• C) Property values are decreasing
• D) The personal and dependency exemption amounts are not increasing as fast as the AMT exemption is decreasing

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Definitions:

Enforce

To compel observance of or obedience to laws, rules, regulations, or agreements.

Oral Promise

A commitment or agreement made through spoken words rather than in writing, subject to limitations under the law for enforceability.

Enforceable

Capable of being imposed, executed, or upheld by law.

Parol Evidence Rule

A legal principle in contract law that prevents parties from modifying a written contract using oral or implied agreements not included in the original document.