I need to find Bubba's AMT adjustments related to the itemized deductions as well as find his AMT tax liability for the current year. His info is as follows:
Taxable income $50,000
Regular tax liability $8,558
Tax preferences $21,000
Itemized deductions including:
Charitable contributions $7,000
Medical expenses (before AGI floor) $11,000
Mortgage interest on personal residence $12,000
State income taxes $6,000
Real estate taxes $9,000
Thank you© BrainMass Inc. brainmass.com June 3, 2020, 9:59 pm ad1c9bdddf
Assuming that Bubba is a single individual:
The following items are positive adjustments for AMT, and that means that they will be added back into income for AMT purposes: *Tax preferences ($21,000),* medical expenses as the difference between the 7.5 % and 10% allowable under AMT(11,000 - 75,000*.075) (11,000 - ...
This solution contains a calculation of the Alternative Minimum Tax for an individual.