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Kenny is single, age 30 with 2020 taxable income of $375,000 and AGI of $400,000. He took the standard deduction in 2020. Kenny's income included
Kenny is single, age 30 with 2020 taxable income of $375,000 and AGI of $400,000. He took the standard deduction in 2020. Kenny's income included $150,000 of municipal interest. He invested the cash from a loan, paying $10,000 of interest expense on those funds. 15% of his municipal bonds are private activity bonds. He also gets depletion deductions from a pass-through. His basis was $75,000 on 1/1/20 and $20,000 on 12/31/20. His total percentage depletion deduction is $55,000. What is Kenny's AMTI?
a. | $408,400 | |
b. | $434,900 | |
c. | None of these | |
d. | $444,900 | |
e. | $409,900 |
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