In 2017, Juanita is married and files a joint tax return with her husband. What

Question

In 2017, Juanita is married and files a joint tax return with her husband. What is her tentative minimum tax in each of the following alternative circumstances? (Input all values as positive. Leave no answer blank. Enter zero if applicable.)

a. Her AMT base is $150,000, all ordinary income.

b. Her AMT base is $255,000, all ordinary income.

c. Her AMT base is $150,000, which includes $33,500 of qualified dividends.

d. Her AMT base is $255,000, which includes $33,500 of qualified dividends.

Explanation / Answer

Answer a. Description Amount (1) AMT Base    150,000.00 (2) Dividends taxed at preferential rate                     -   (3) Tax rate applicable to dividends 15% (4) Tax on dividends                     -   (2) X (3) (5) AMT base taxed at Regular AMT rates    150,000.00 (1) - (2) (6) Tax on AMT base taxed at 26% rate      39,000.00 $150,000 X 26% (7) Tax on AMT base (in excess of $187,800) taxed at 28% rate                     -   Tentative Minimum Tax      39,000.00 (4) + (6) + (7) Answer b. Description Amount (1) AMT Base    255,000.00 (2) Dividends taxed at preferential rate                     -   (3) Tax rate applicable to dividends 15% (4) Tax on dividends                     -   (2) X (3) (5) AMT base taxed at Regular AMT rates    255,000.00 (1) - (2) (6) Tax on AMT base taxed at 26% rate      48,828.00 $187,800 X 26% (7) Tax on AMT base (in excess of $187,800) taxed at 28% rate      18,816.00 ($255,000 - $187,800) X 28% Tentative Minimum Tax      67,644.00 (4) + (6) + (7) Answer c. Description Amount (1) AMT Base    150,000.00 (2) Dividends taxed at preferential rate      33,500.00 (3) Tax rate applicable to dividends 15% (4) Tax on dividends        5,025.00 (2) X (3) (5) AMT base taxed at Regular AMT rates    116,500.00 (1) - (2) (6) Tax on AMT base taxed at 26% rate      30,290.00 $116,500 X 26% (7) Tax on AMT base (in excess of $187,800) taxed at 28% rate                     -   Tentative Minimum Tax      35,315.00 (4) + (6) + (7) Answer d. Description Amount (1) AMT Base    255,000.00 (2) Dividends taxed at preferential rate      33,500.00 (3) Tax rate applicable to dividends 15% (4) Tax on dividends        5,025.00 (2) X (3) (5) AMT base taxed at Regular AMT rates    221,500.00 (1) - (2) (6) Tax on AMT base taxed at 26% rate      48,828.00 $187,800 X 26% (7) Tax on AMT base (in excess of $187,800) taxed at 28% rate        9,436.00 ($221,500 - $187,800) X 28% Tentative Minimum Tax      63,289.00 (4) + (6) + (7)

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