G. Alternative Minimum Taxable Income (AMTI) Exclusion

A qualified taxpayer must exclude income, positive and negative adjustments, and preference items attributable to any trade or business when figuring AMTI. These adjustments and preference items must also be excluded when calculating any deductions that may result in AMT carryovers. You are a qualified taxpayer if you meet both of the following:

Own or have an ownership interest in a trade or business.

Have aggregate gross receipts (less returns and allowances) during the taxable year of less than $1,000,000 from all trades or businesses for which you are the owner or have an ownership interest. Gross receipts may include, but are not limited to, items reported on federal Schedules C, Profit or Loss from Business; D, Capital Gains and Losses; E, Supplemental Income and Loss (other than income from a trust); or F, Profit or Loss from Farming; and from federal Form 4797, Sales of Business Property (figured in accordance with California law); or California Schedule D‑1, Sales of Business Property (if required to complete it), that are associated with a trade or business. In the case of an ownership interest, you include only the proportional share of gross receipts of any trade or business from a partnership, S corporation, regulated investment company (RIC), a real estate investment trust (REIT), or real estate mortgage investment conduit (REMIC) in accordance with your ownership interest in the enterprise. Apply the $1,000,000 test to the return regardless of filing status. The threshold does not become $2,000,000 for married /RDP taxpayers filing jointly.

Aggregate gross receipts (less returns and allowances) means the sum of the gross receipts of the trades or businesses which you own and the proportionate interest of the gross receipts of the trades or businesses which you own and of pass-through entities in which you hold an interest.

Gross receipts (less returns and allowances) means the sum of the gross receipts from the production of business income, as defined in R&TC Section 25120(a), and the gross receipts from the production of nonbusiness income, as defined in R&TC Section 25120(d).

Proportionate interest means:

In the case of a pass-through entity which reports a profit for the taxable year, your profit interest in the entity at the end of your taxable year.

In the case of a pass-through entity which reports a loss for the taxable year, your loss interest in the entity at the end of your taxable year.

In the case of a pass-through entity which is sold or liquidates during the taxable year, your capital account interest in the entity at the time of the sale or liquidation.

Proportionate interest includes an interest in a pass-through entity including a partnership, S corporation, RIC, REIT, or REMIC.

If you are a qualified taxpayer both of the following applies:

In Part I, do not include any positive or negative adjustments or preference items attributable to any trade or business.

In Part I, line 17, enter all taxable income attributable to any trade or business.