Question
Lynn, age 45, is single and has no dependents. Her income and expenses for 2018 are reported as follows. Income: Salary $233,000 Taxable interest on
Lynn, age 45, is single and has no dependents. Her income and expenses for 2018 are reported as follows.
Income:
Salary $233,000
Taxable interest on corporate bonds 13,700
business income 64000
Expenditure
Home office expense deduction 3200
state income taxes 6000
real estate taxes 8500
Mortgage (qualified housing) interest 9200
home equity loan interest 2500
Investment interest 15500
Cash contributions to various charities 2900
The 64000 business income is from Apex office supplies Company, a sole proprietorship that Lynn owns and operates. Apex claimed MACRS depreciation of $3175 on personal property used in the business and placed in service in the current year. Lynn received interest of $30000 on City of Pensacola private activity bonds that were issued in 2013.
Based on the information presented above, compute Lynn's AMT for 2018.
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