Allen, an unmarried taxpayer filing single, has no dependents and reports the following items on his 2013 federal income tax return:
Adjusted gross income ................................................. $75,000
Taxable income ......................................................... 48,000
Regular tax liability ..................................................... 7,929
Tax preferences ......................................................... 20,000
Itemized deductions including:
Charitable contributions ................................................ 7,500
Medical expenses (before AGI floor) .............................. 10,000
Mortgage interest on personal residence ........................... 10,000
State income taxes ..................................................... 5,000
Real estate taxes ........................................................ 8,000
a. What is the amount of Allen's AMT adjustments related to itemized deductions?
b. What is Allen's AMT liability for 2013?