3) Indiv Income Tax Comp

In 2022, Nadia is single and has $124,000 of regular taxable income. She itemizes her deductions as follows: real property taxes of $2,700, state income taxes of $3,200, and mortgage interest expense of $16,000 (acquisition indebtedness of $200,000). In addition, she receives tax-exempt interest of $3,400 from a municipal bond (issued in 2006) that was used to fund a new business building for a (formerly) out-of-state employer. Finally, she received a state tax refund of $900 from the prior year.

Note: Amounts to be deducted should be indicated by a minus sign.

a-1. What is Nadia's AMTI this year if she deducted $18,000 of itemized deductions last year (including a total of $4,000 of real property taxes and state income taxes) and did not owe any AMT last year?

b-1. What is Nadia's AMTI this year if she deducted the standard deduction last year and did not owe any AMT last year?