Problem 6-12 (Algorithmic)

The Individual Alternative Minimum Tax (AMT) (LO 6.5)

Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $152,400. They have excess depreciation on real estate of $91,440, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $30,480, and they made charitable contributions of $15,240. They have no other itemized deductions.

If Otto and Monica's taxable income for the current year is $106,680, determine the amount of their AMTI.