Under Federal Tax Law, an investor would have to pay the alternative minimum tax (A) only if an investor purchased an oil and gas program. (B) only if the investor's capital gains exceeded 15% of total income. (C) if the alternative minimum tax due exceeded the investor's regular income tax liability. (D) only if it is less than the investor's regular income tax liability.

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Cheyenne Rollins

Today, 16:24

Under Federal Tax Law, an investor would have to pay the alternative minimum tax (A) only if an investor purchased an oil and gas program. (B) only if the investor's capital gains exceeded 15% of total income. (C) if the alternative minimum tax due exceeded the investor's regular income tax liability. (D) only if it is less than the investor's regular income tax liability.

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Lincoln Norton · Answer 1

The correct option is option C

Explanation:

The option A is incorrect as it has nothing to doe with the alternative minimum tax.

The option B is incorrect as the alternative minimum tax is not linked with the capital gains.

The option C and D both are linked with the regular tax liability which is the correct reason for the alternative minimum tax payment. However as the value of alternative minimum tax due has to be more than the regular income tax liability only in that case the investor can pay for this. Thus only option C is correct.