Nancy Yamasaki is a Chief Financial Officer for GoMax Corp. She is single (no children), age 45, and lives at 826 Vista Drive Street in San Carlos, CA 94025. Her social security number is 555-86-1212. Her W-2 for 2020 reads as follows:

Earnings from GoMax Corp.: $188,000

2020 Federal Income tax withheld: $40,000

2020 State Income tax withheld: $18,000

Nancys other income is as follows: interest of $3,000 from a CD at Bank of America and interest of $3,750 from corporate bonds issued by PG & E. She also earned $32,000 of tax-exempt private activity bond interest, which is included in Form 6251, line 2g Part I. (Keep in mind this may not be the only item you need to include in Form 6251).

Nancy also has the following payments and written proof of each of them:

• Home mortgage interest (acquisition mortgage) $42,210 (debt amount is under $750,000)
• Credit card interest $2,950
• California auto registration value based property tax ( i.e. the deductible part) on her 2012 sports cars $770
• Auto Insurance Premium $1,770
• State Income taxes paid in April 2020 (for the 2019 California tax return) $17,150
• Federal income taxes paid in April 2020 (for the 2019 Federal return) $2,990
• Property taxes on her home $11,260
• Medical expenses (i.e. prescriptions, doctor co-pays, legitimate stuff) $1,025
• CPA tax preparer fees to handle 2013 IRS audit (no extra tax was due) $9,100

Charitable contributions:

• American Cancer Society $2,000
• University of California, Berkley $12,000
• Esperanza Orphanage ( a charity incorporated in Chile) $500

Required: Complete Nancys federal tax return for 2020. You will prepare and turn in Form 1040,Sch 2, Sch. A, Sch B and Form 6251. Keep in mind that not all information presented may be deductible on the tax return; do your research.

Read carefully what is required to complete Form 6251 to calculate AMT tax.

Form 6251 Alternative Minimum Tax-Individuals OMB No 1545-0074 Department of the Treur Go to www.irs.gov/Form251 for instructions and the latest information Aach Income Genie Attach to Form 1040, 1040-SR or 1040-NEL Secure No 32 Na shown on Form 1040 1040-SR. 1040-NR You curly number 2020 ? r Part 1 Alternative Minimum Taxable income (See instructions for how to complete cach line.) 1 Enter the amount from Form 1040 or 1000-SR, line 15. f more than zero. Form 1040 or 1040-SR, ine 15 is zero, subtract lines 12 and 13 of Form 1040 1040-SR from line 11 of Form 1040 or 1040-SR and on the result here. If less than zero, enter as a negative amount + 2a If filing Schedule A Form 1040). enter the taxes from Schedule A line 7, otherwise, enter the amount from Form 1040 or 1040-SR, line 12 2a b Tax refund from Schedule 1 Form 1040), line 1 or line 21 c Investment interest expense difference between regular tax and AMT) 2c d Depletion (difference between regular tax and AMT) 2d e Net operating los deduction from Schedule 1 Form 1040). in 8 Enteras aportive amount 2e f Alternative tax net operating loss deduction Interest from specified private activity bonds exempt from the regular fax 29 h Qualified small business stock. see instructions 2h Exercise of incentive stock options (excess of AMT income over regular tax income 2 i Estates and trust famount from Schedule K-1 om 1041). box 12 code A k Deposition of property difference between AMT and regulatox gain or los 1 Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) m Passive activities (difference between AMT and regular tax income or los n Loss limitations difference between AMT and regular tax income or los o Circulation cost difference between regkor tax and AMT. Long-term contracts (difference between AMT and regular tax income Mining costs (difference between regular tax and AMT Research and experimental cost difference between regular tax and AMT Income from certain installment sales before January 1, 1987 Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments 4 Alternative minimum taxable income. Combine lines through 3. married filing separately and line is more than $745 200. see instructions) 4 Part II Alternativo Minimum Tax AMT 5 Exemption IF your filing status is... AND 4 is not over THEN enter online Single or head of household $ 510.400 $72.900 Married sing only or Qualifying widow 1036.000 113.400 Married fling separately 518.400 56,700 I line 4 is over the amount shown above for your ing status, sestructions G Subtract line 5 from line 4. If more than zero, go to line 7 12 orentieroberend online and 11, and go to line 10 6 7 If you are filing Form 2565, se instructions for the amount to enter . If you reported capitalgan diatributions directly on Form 1040 1040 SF, ne 7, you reported Qualified dividends on Form 1040 1040-SR, line 3 or you had again on both lines 15 and 16 of Schedule D Form 1041 las refigured for the AMT complete Part on the back and order the amount from line 40 here All others line is $197.900 or 390.650 or los married flere milline oby 202 10.26). Otherwise, multiply line oby 200 201 w subtract..$1.97 married in separately from the result 8 Alternative minimum tax forng tax credit struction 9 Tentative mumtox. Subtract line from line 7 10 Add Form 1040 or 1040-5R in 10 minuta tror Form 4072 and schedule 2 Form One Subtract from the rest wy foreign tax credit from Schedule Form 100 met you d Sched to figure your tax on Form 1040 1040-SA line 16, refigure that tax without wing Scheiben completing the instruction 10 11 AMT. Stract line 10 from one or Enter den Side 21045 For Paperwork Reduction Act Notice, see your tax return 12 Form 2020 Page 2 Part II Tax Computation Using Maximum Capital Gains Rates Complete Partill only if you are required to do so by line 7 or by the Foreign Eamed Income Tax Worksheet in the instructions 12 Enter the amount from Form 6251, line 5. If you are fing Form 2555, enter the amount from line 3 of the worksheet in the instructions for line 7 13 Enter the amount from line 4 of the Qualified Dividends and Capital Gain Tax Worksheet in the Instructions for Form 1040 and 1040-SR or the amount from line 13 of the Schedule D Tax Worksheet in the Instructions for Schedule D Form 1040), whichever applies as refigured for the AMT, i necessary) (sen instruction). If you are filing Form 2555, se instructions for the amount to enter 13 14 Enter the amount from Schedule D Form 1040), line 19 (as refigured for the AMT, it necessary) (see instructions. If you are filing Form 2565, set instructions for the amount to enter 14 15 If you did not complete a Schedule Tax Worksheet for the regular tax or the AMT, enter the amount from line 13. Otherwine, add lines 13 and 14. and enter the smaller of that result of the amount from line 10 of the Schedule D Tax Worksheet (as refigured for the AMT, it necessary. If you are fing From 2565 instructions for the amount to enter 15 16 Enter the smaller of line 12 or line 15 16 17 Subtract line 16 from line 12 17 18 of line 17 is $197.900 or less $28.950 or less if married filing separately, multiply ine 17 by 20% 1026). Otherwise, multiply line 17 by 28% (0.28) and subtract $3,968 (51,979 i marred fing separately from the result 18 19 Enter $80,000 il married fling jointly or qualitying widower). - $40,000 i single or mamed filing separately, or 19 $33.600 if head of household 20 Enter the amount from line 5 of the Qualified Dividends and Capital Gain Tax Worksheet or the amount from line 14 of the Schedule D Tax Worksheet, whichever applies (as figured for the regular you did not complete either worksheet for the regular tax, enter the amount from Form 1040 of 1040-SR. Iine 15 i zoro or less, enter - If you are filing Form 2585, se instructions for the amount to enter 20 21 Subtract line 20 from line 19. If zero or less entero- 21 22 Enter the smaller of line 12 or line 13 22 23 Enter the smaller of line 21 or line 22. This amount isted at 0% 23 24 Subtract line 23 from line 22 24 25 Enter - 441.450 il single $248,300 if married in separately 25 $196,600 if mamed fing jointly or qualifying widow) $409.050 il head of houshold 26 Enter the amount from line 21 26 27 Enter the amount from line 5 of the unified Dividends and Capital Gain Tax Worksheet or the amount from line 21 of the Schedule Tax Worksheet, whichever applies las figured for the regular and you did not complete either worksheet for the regular fax, enter the amount from Form 100 or 1040-SA, line 15. i 20 or less enter you are filing Form 2585.nctions for the amount to enter 28 Add line 26 and line 27 28 29 Subtract line 28 from line 25. If reo or less entero 30 Enter the smaller of line 24 or line 29 30 31 Multiply line 30 by 1510 15) 31 32 Add lines 23 and 30 Hlines 32 and 12 are the same, skip lines 33 through 37 and go to 3. Otherwise, go to line 33 33 Subtract line 32 from line 22 34 Multiply line 33 by 20% (0.20) If line 14 is er or blank, skip lines 36 through 37 and go to line 38. Otherwise, go to line 25 35 Add lines 17.32 and 33 36 Subtract line 36 from line 12 36 Multicly line 36 by 25% 1025 35 Add lines 18, 31, 34, and 37 38 I line 12$107.000 or los medio separate multicine 12 by 2020 Otherwis mully line 12 by 28% 0.35831979. married filing them Enter the smaller of line 35 or her and one of your fing Form 255, do not amount online nedenfor it one of the worksheets the structions for 27 8888888888 33 30 35 37 29 40 40