Question
Alternative Minimum TaxComputation. B is single and reports the following items of income and deductions for the current year (before limitations): Salary . . .
Alternative Minimum TaxComputation. B is single and reports the following items of income and deductions for the current year (before limitations):
Salary . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$550,000 Net short-term capital gain on sale of investment property . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000 Interest income...............................................................................8,500 Qualifying dividend income...............................................................11,750 Medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,500 Casualty loss . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14,500 State and local income taxes .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 Real estate taxes. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Charitable contributions (all cash) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000 Interest on home mortgage . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 22,000 Investment interest expense...............................................................20,000 The only additional transaction during the year was the exercise of an incentive stock option of her employer's stock at an option price of $12,000 when the stock was worth $225,000.
Compute B's regular tax liability (including Medicare Surtaxes on wages and net investment income) and the Alternative Minimum Tax, if applicable for 2023.
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