Which of the following would qualify a taxpayer for the AMTI exclusion?

The AMTI (Alternative Minimum Taxable Income) exclusion is designed to limit the impact of AMT on smaller businesses and individual taxpayers. Ownership interest in a business with gross receipts below $1,000,000 is significant because the AMT is intended to ensure that higher-income individuals and larger businesses do not have disproportionately lower tax liabilities due to various deductions and exemptions.

In this context, holding ownership in a business that falls below the $1,000,000 threshold helps taxpayers qualify for certain exclusions, as the tax code is structured to provide some relief to smaller enterprises that may not have the same financial capabilities as larger businesses. Small businesses typically face different challenges and have fewer resources, making it reasonable for the tax code to provide some leniency in determining eligibility for AMTI exclusions.

The other scenarios do not provide the same level of exclusion eligibility under AMTI regulations. For example, ownership of rental property or operating a bakery with gross receipts that exceed certain levels may not qualify for the exclusion due to their revenue potential. Likewise, being employed as a sole proprietor does not inherently create a situation where the individual qualifies for AMTI exclusion, especially if income levels suggest a greater financial capability.