Chance and Lindsay, both 37, are married and file a joint return in 2016. Their AGI is $580,000. They report $39,000 of itemized deductions, consisting of the following amounts.
Home mortgage interest.......................$25,000
Charitable contributions........................14,000
Given that the couple's AGI exceeds the applicable amount ($311,300 in 2016), their itemized deductions are subject to a potential 3%/80% cutback.
a. What is the amount of Chance and Lindsay's itemized deductions for regular tax purposes for 2016?
b. What is the couple's AMT adjustment for itemized deductions in 2016?