Which of the following is subject to the Alternative Minimum Tax?

The Alternative Minimum Tax (AMT) was designed to ensure that individuals with high incomes pay a minimum level of tax, even when they utilize various deductions and credits to reduce their taxable income. Individuals with a high amount of itemized deductions may find their AMT liability to be relevant, as many of the deductions that contribute to a lower regular tax calculation are not allowed under the AMT framework.

When calculating AMT, certain itemized deductions—such as state and local taxes, and certain miscellaneous deductions—are added back to income, which can trigger a higher tax liability than what may be calculated under the standard tax system. This is particularly pertinent for taxpayers with substantial itemized deductions who might otherwise escape taxation through those deductions. As such, they are more likely to be subject to the AMT if their income exceeds the threshold set for the tax.

In contrast, the other options do not have the same direct relationship with AMT calculations. For instance, loans against retirement accounts do not typically influence AMT calculations, as the existence of these loans does not directly affect taxable income. Taxpayers residing in multiple states may have complexities in their tax returns but aren't inherently subject to AMT solely based on residency in different states. Lastly, while investment losses