Arthur Wesson, an unmarried individual who is age 68, reports taxable income of $510,000 in 2020. He reports positive AMT adjustments of $80,000 and preferences of $35,000. Arthur itemizes his deductions, and his regular tax liability in 2020 is $153,295. Click here to access the exemption table. a. Arthur's initial AMT exemption amount for 2020 is $ 72,900 1 since his filing status is single. However, the exemption is phased out at a rate of 25 cents on the dollar when AMTI exceeds $ 518,400 V. Therefore, Arthur's total AMT exemption will be $ 24,063 X. rate applies to the first $197,900 of the AMT base, A graduated, two-tier AMT rate schedule applies to individual taxpayers. A 26% and a 28% rate applies to the AMT base in excess of $197,900. Compute Arthur's AMT for 2020. Arthur's taxable income (before personal exemption) 510,000 Plus: Positive AMT adjustments 80,000 Plus: Tax preferences 35,000 Equals: AMTI 625,000 Less: Exemption Equals: AMT base Tentative AMT $ Regular income tax liability $153,295 AMT b. What is the total amount of Arthur's tax liability? $ Phaseout Begins at Ends at Status Married, joint Single or head of household Married, separate Exemption $113,400 72,900 56,700 $1,036,800 518,400 518,400 $1,490,400 810,000 745,200 Arthur Wesson, an unmarried individual who is age 68, reports taxable income of $510,000 in 2020. He reports positive AMT adjustments of $80,000 and preferences of $35,000. Arthur itemizes his deductions, and his regular tax liability in 2020 is $153,295. Click here to access the exemption table. a. Arthur's initial AMT exemption amount for 2020 is $ 72,900 1 since his filing status is single. However, the exemption is phased out at a rate of 25 cents on the dollar when AMTI exceeds $ 518,400 V. Therefore, Arthur's total AMT exemption will be $ 24,063 X. rate applies to the first $197,900 of the AMT base, A graduated, two-tier AMT rate schedule applies to individual taxpayers. A 26% and a 28% rate applies to the AMT base in excess of $197,900. Compute Arthur's AMT for 2020. Arthur's taxable income (before personal exemption) 510,000 Plus: Positive AMT adjustments 80,000 Plus: Tax preferences 35,000 Equals: AMTI 625,000 Less: Exemption Equals: AMT base Tentative AMT $ Regular income tax liability $153,295 AMT b. What is the total amount of Arthur's tax liability? $ Phaseout Begins at Ends at Status Married, joint Single or head of household Married, separate Exemption $113,400 72,900 56,700 $1,036,800 518,400 518,400 $1,490,400 810,000 745,200
