American military thought has coined the expression 'Overall Strategic Objective.' When [British] officers first heard this they laughed; but later on its wisdom became apparent and accepted. Evidently this should be the rule, and other great business be set up in subordinate relationship to it.
The AMT was created in 1969 over outrage that 155 high-income households making over $200,000 at that time didn't end up owing any federal income tax. That $200,000 would be worth $1.3 million today.
How does the credit work? Suppose ABC Corporation's AMT liability was $1 million in 2004. If ABC owes $2 million in regular income taxes for 2005 and has no tentative minimum tax that year, it could reduce its regular income tax by $1 million, the amount of AMT it paid in 2004.f, for example, ABC owes $2 million in regular income taxes for 2005 and has a tentative minimum tax of $1.5 million, it can use only half of its AMT credit from 2004, or $500,000. It can then apply the unused remainder of its 2004 AMT credit to regular taxes in subsequent years.