1. Tanya, who is head of household and age 32, provides you with the following i
ID: 2476471 • Letter: 1
Question
1. Tanya, who is head of household and age 32, provides you with the following information from her financial records for 2015. Regular income tax liability $30,718 AMT positive adjustments $30,000 AMT preferences $20,000 Taxable income $115,000 Calculate her AMTI for 2015.
a. $35,503. b. $136,550. c. $154,675. d. $165,000.
2. Maxwell, who is single, owns a personal residence in the city. He also owns a townhouse near the ocean. He uses the townhouse as a vacation home. In March 2015 he borrowed $50,000 on a home equity loan and used the proceed to acquire a luxury automobile. During 2015, he paid the following amounts of interest.
On his personal residence $15,000
On the townhouse 6,000
On the home equity loan 4,000
On credit card obligations 2,000
What amount, if any, must Maxwell recognize as an AMT adjustment in 2015?
$0.
$2,000.
$4,000.
$6,000.
3. Mandy, who is single and age 33, provides you with the following information from her financial records for 2015.
Regular income tax liability $ 8,000
AMT adjustments 10,000
AMT preferences 20,000
Taxable income 75,000
Calculate her AMT for 2015.
$5,364
$8,000
$13,364
0.
a.$0.
b.$2,000.
c.$4,000.
d.$6,000.
Explanation / Answer
Solution.
We know that:
Taxable Income
+ Positive Adjustments
– Negative Adjustments
+ Tax Preferences
= Alternative Minimum Taxable Income
1. AMTI = $115000+$30000+$20000 = $165000
Answer: d. $165000
2. Answer: c. $4000
3. AMT = [(75000+10000+20000) - 53600] * 26%
Answer: c. 13364
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.