Form Dr 104amt Draft - Colorado Alternative Minimum Tax Computation Schedule

ALTERNATIVE MINIMUM TAX INSTRUCTIONS

FOR PART-YEAR AND NONRESIDENTS

In the case of a nonresident, the Colorado alternative

that part of the year he was a nonresident over the total

minimum tax shall be apportioned in the ratio of the

modified federal alternative minimum taxable income.

modified federal alternative minimum taxable income

Adjustments relative to the standard deduction and

from Colorado sources to the total modified federal

itemized deductions would be Colorado adjustments

alternative minimum taxable income.

to the extent of the Colorado adjusted gross income

In the case of a part-year resident, the Colorado

ratio as determined on line 34 of Form 104PN. Other

alternative minimum tax shall be apportioned in the ratio

adjustments would be Colorado adjustments to the

of the modified federal alternative minimum taxable

extent they relate to items of income from Colorado

income applicable to that part of the year he was a

sources. Tax preference items are Colorado items

resident plus the modified federal alternative minimum

to the extent they relate to a business being carried

taxable income from Colorado sources, if any, during

on in Colorado.

EXAMPLE: Taxpayers are nonresidents of Colorado. Their federal adjusted gross income is $100,000, $9,000

of which is U.S. government interest. They have $4,800 of non-Colorado state bond interest. Their federal

itemized deductions are $31,100, and their federal exemptions are $6,800. $29,000 of their federal adjusted

gross income is Colorado source income. They have federal alternative minimum tax adjustments of $27,100

relating to itemized deductions. Their tax preference items are $28,000, $24,000 of which relate to Colorado

activities. Their Colorado alternative minimum tax computation is as follows:

Colorado

Total

Portion

Percentage

1. Federal adjusted gross income ........................................................................$100,000 ......... $29,000

2. State interest addition .............................................................................................4,800

3. Total ..................................................................................................................$104,800 ......... $29,000

4. U.S. interest subtraction .........................................................................................9,000

5. Modified federal A.G.I. ........................................................................................$95,800 ......... $29,000 ..........30.27%

6. Federal itemized deductions ................................................................................31,100

7. Federal exemptions ................................................................................................6,800

8. Modified federal taxable income .........................................................................$57,900

9. Normal tax at 4.63% .............................................................................................$2,681

10. Prorated at 30.27% ........................................................................................................................ $812

11. Modified federal taxable income from line 8 ....................................................... $57,900 ......... $17,526 ..........30.27%

12. Exemption addback ................................................................................................6,800 ............. 2,058 ..........30.27%

13. Modified federal line 36 amount .........................................................................$64,700 ......... $19,584

14. Adjustments ..........................................................................................................27,100 ............. 8,203 ..........30.27%

15. Preferences ..........................................................................................................28,000 ........... 24,000

16. Modified federal alternative minimum taxable income (lines 13, 14 and 15) .... $119,800 ......... $51,787 ..........43.23%

17. Federal alternative minimum tax exemption ......................................................... 69,950

18. Net ......................................................................................................................$48,850

19. Alternative minimum tax @ 3.47% .......................................................................$1,730

20. Prorated at 43.23% ........................................................................................................................ $748

21. Minus normal tax .............................................................................................................................. 512

22. Colorado alternative minimum tax .................................................................................................. $236