1)

Ted, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a vacation home. In March, he borrowed $50,000 on a home equity loan and used the proceeds to acquire a luxury automobile. During the year , he paid the following amounts of interest.

	On his personal residence	$15,500
	On his condo	6,200
	On the home equity loan	4,800
	On credit card obligations	1,700

What amount, if any, must Ted recognize as an AMT adjustment in 2019? (Please explain step by step)

a.$0

b.$4,800 (NOT A RIGHT ANSWER)

c.$6,200

d.$11,000

2)

Mitch, who is single and age 46 and has no dependents, had AGI of $100,000 this year. His potential itemized deductions were as follows.

Medical expenses (in excess of AGI floor)	$15,000
State income taxes	3,000
Real estate taxes	7,000
Mortgage interest (acquisition of primary residence)	13,000
Home equity loan interest (loan used to finance the purchase of a car)	4,000
Unreimbursed employee expenses	4,300

What is the amount of Mitchs AMT adjustment for itemized deductions for 2019? (Please explain step by step)

a.$10,000

b.$16,000

c.$34,300

d.$12,300 (NOT A RIGHT ANSWER)