Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. In 2020, Sara who is single, had $150,000 of regular taxable income. She had the following itemized deductions: Mortgage Interest paid of $9.675 (acquisition

image text in transcribed
4. In 2020, Sara who is single, had $150,000 of regular taxable income. She had the following itemized deductions: Mortgage Interest paid of $9.675 (acquisition debt of ($400,000) Allowed Medical deduction on Schedule A of $450 after taking the 7.5% disallowed Real Estate Taxes paid of $5,500 State income taxes withheld of $7,500 Charity contributions of $2,000 She also received tax exempt interest of $2,500 from a municipal bond and was notified that $1,275 of it was private activity interest. She also received a refund of state taxes of $550, and she itemized in 2019 and all of this amount was determined to be a tax benefit in 2018 taxes. a. What is Sara's AMTI this year if she deducted $15,000 of itemized deductions last year and did not owe any AMT last year? Complete Form 6251 up to line 4 on first page. b. What is Sara's AMTI this year if she took the standard deduction in 2019 and she dia not owe any AMT last year? Complete Form 6251 up to line 4 on first page. 4. In 2020, Sara who is single, had $150,000 of regular taxable income. She had the following itemized deductions: Mortgage Interest paid of $9.675 (acquisition debt of ($400,000) Allowed Medical deduction on Schedule A of $450 after taking the 7.5% disallowed Real Estate Taxes paid of $5,500 State income taxes withheld of $7,500 Charity contributions of $2,000 She also received tax exempt interest of $2,500 from a municipal bond and was notified that $1,275 of it was private activity interest. She also received a refund of state taxes of $550, and she itemized in 2019 and all of this amount was determined to be a tax benefit in 2018 taxes. a. What is Sara's AMTI this year if she deducted $15,000 of itemized deductions last year and did not owe any AMT last year? Complete Form 6251 up to line 4 on first page. b. What is Sara's AMTI this year if she took the standard deduction in 2019 and she dia not owe any AMT last year? Complete Form 6251 up to line 4 on first page

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Get Funded The Startup Entrepreneurs Guide To Seriously Successful Fundraising

Authors: John Biggs, Eric Villines

1st Edition

1260459063, 978-1260459067

More Books

Students also viewed these Finance questions