The IRA's New Alternative Minimum Tax

The IRA made no changes to the statutory rate and introduced a new alternative minimum tax. The AMT is based on 15% of adjusted financial statement income, sometimes called AFSI or just AFC for short. If in a future year their regular tax is more than that, then that deemed to be an amount of alternative minimum tax that they pay for the year. And there has other adjustments, including some adjustments for investments in corporations and partnerships.