Question
I need help figuring out the computation of AMTI. Ive filled in what I know, I just dont understand how to do the AMTI portion.
I need help figuring out the computation of AMTI. Ive filled in what I know, I just dont understand how to do the AMTI portion.
Lynn, age 45, is single and has no dependents. Her income and expenses for 2019 are reported as follows.
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The $64,000 business income is from Apex Office Supplies Company, a sole proprietorship that Lynn owns and operates. Apex claimed MACRS depreciation of $3,175 on personal property used in the business and placed in service in the current year. Lynn received interest of $30,000 on City of Pensacola private activity bonds that were issued in 2013.
Based on the financial information presented above, compute Lynn's AMT for 2019. Ignore the one-half deduction for self-employment taxes for this problem.
Gross income |
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| $ 310700 |
Less: deductions for AGI |
|
| 3200 |
Adjusted gross income |
|
| $ 307500 |
Less: deductions from AGI |
|
| 35800 |
Taxable income |
|
| $ 271700 |
Regular income tax calculation |
|
|
|
Total tax |
|
| $ 70784.50 |
|
|
|
|
Computation of alternative minimum tax |
|
|
|
Taxable income |
|
| $ |
Plus: positive adjustments and tax preferences |
|
|
|
Less: negative adjustment |
|
|
|
Alternative minimum taxable income |
|
|
|
Less: AMT exemption |
|
| 71700 |
AMT base |
|
| $ |
TMT |
|
| $ |
AMT |
|
| $ |
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