Tax: charitable contributions, and AMT calculation
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24. Doug's records contain the following information:
1. Donated stock having a fair market value of $3,600 to a qualified charitable organization. He acquired the stock five months previously at a cost of $2,400.
2. Paid $700 to a church school as a requirement for the enrollment of his daughter.
3. Paid $200 for annual homeowner's association dues.
4. Drove 400 miles in his personal auto at 14 cents per mile. The travel was directly related to services he performed for his church (actual costs were not available).
What is Doug's charitable contribution deduction?
a. $2,456
b. $3,156
c. $3,356
d. $3,656
25. Tom and Mary are married and file a joint return for the current year with taxable income of $100,000 and tax preferences and adjustments of $20,000 for AMT purposes. Their regular tax liability is $15,750. What is the amount of their total tax liability?
a. $370
b. $14,937
c. $15,750
d. $31,200
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Solution Summary
For the two tax problems presented, the solution explains the reasons for the answers and the computations.
Solution Preview
1. Enrollment for daughter is a personal expense but it may qualify as day care or education. It is not charitable. Homeowners dues are also a personal expense. Because ...
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