Individual Taxation Course

Information for a Peter and Zoe, a married couple filing as married filing joint for $2023$ is listed below. They have three dependent children ages $16,18$ and $19.$ The deduction and income items listed below have already been used to calculate their $$260,000$ of taxable income. They itemized their deductions $($all their itemized deductions are listed below$)$ and they had no capital gains or losses.

A$.$ Calculate their $2023$ AMT $($if any$)($show the details of your calculation$).$ You$$ll need to find the revenue procedure with the $2023$ inflation adjusted amounts to calculate regular tax and to know the exemption amount and rate brackets for AMT purposes.

B$.$ Which of the items that affect AMT will create a minimum tax credit for this couple?

Taxable income

$$260,000$

Mortgage interest on debt to acquire principal residence; debt balance is below $$1$ million and was obtained in $2010$

$$27,000$

State and local taxes claimed on Schedule A

$$10,000$

Charitable contributions

$$9,000$

Gambling losses to extent of gambling winnings

$$7,500$

Interest income on private activity bonds

$$13,000$

Spread on exercise of ISO by Zoe

$$327,000$