APPLYING THE IRS CODE

Create a table for the answer to this problem. Include these categories: AMT; Regular Tax: Adjustment.

Charles had the following itemized deductions in 2014:

State income taxes $3,000

Charitable contributions 4,900

Mortgage interest (personal residence) 14,000

Medical expenses [$8,000-(7.5% $75,000)] 2,375

Miscellaneous [$3,200-(2%$75,000)] 1,700

a. What are Charles itemized deductions for AMT purposes?

b. What is the amount of the AMT adjustment?