Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Pat is 40, is single, and has no dependents. She received a salary of $390,000 in 2020. She earned interest income of $11,000, dividend income
Pat is 40, is single, and has no dependents. She received a salary of $390,000 in 2020. She earned interest income of $11,000, dividend income of $15,000, gambling winnings of $14,000, and interest income from private activity bonds (issued in 2016) of $40,000. The dividends are not qualified dividends. The following additional information is relevant. State income taxes $8,100 Real estate taxes 4,000 Mortgage interest on residence 13,100 Investment interest expense 3,800 Gambling losses 5,100 a. Compute Pat's taxable income and AMTI. Taxable Income Computation Adjusted gross income $ Itemized deductions Taxable income AMTI Computation Taxable income Add: itemized deductions adjustments LOL! Add: income AMT preference items AMTI b. Compute Pat's tentative minimum tax. Computation of AMT Base and Tax AMTI AMT exemption AMT base Tentative AMT
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started