Allen, an unmarried taxpayer filing single, has no dependents and reports the following items on his 2016 federal income tax return:
Adjusted gross income..............................................................$82,450
Taxable income............................................................................47,950
Regular tax liability.........................................................................7,759
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 2016?