Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lynn, age 45, is single and has no dependents. Her Income and expenses for 2020 are reported as follows. Income $233,000 Salary Taxable interest on

image text in transcribed
image text in transcribed
image text in transcribed
Lynn, age 45, is single and has no dependents. Her Income and expenses for 2020 are reported as follows. Income $233,000 Salary Taxable interest on corporate bonds Business income 13,700 64,000 Expenses Home office expense deduction (associated with sole proprietorship) State income taxes 3,200 6,000 8,500 Real property taxes Home mortgage (qualified housing) interest Home equity loan interest 9,200 Investment interest Cash contributions to various charities 2,500 15,500 2,900 The 564,000 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 2014 Based on the financial Information presented above, compute Lynn's AMT for 2020. Ignore the one half deduction for self-employment taxes for this problem. 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 2014. Based on the financial information presented above, compute Lynn's AMT for 2020. Ignore the one-half deduction for self-employment taxes for this problem Click here to access the Tax Rate Schedules. Click here to access exemption tables. If an amount is zero, enter "O". Round your intermediate computations and final answers to nearest dollar. Gross income Adjusted gross income Less: deductions from AGI Taxable income Regular income tax calculation Total tax Computation of alternative minimum tax Computation of alternative minimum tax Taxable income III Plus: positive adjustments and tax preferences Less: negative adjustment Alternative minimum taxable income Less: AMT exemption AMT base $ TMT AMT

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions