Required information [The following information applies to the questions displayed below.] In 2019, Janet and Ray are married filing jointly. They have five dependent children under 18 years of age. Janet and Ray's taxable income is $2,450,000, and they itemize their deductions as follows: state income taxes of $10,000, and mortgage interest expense of $25,000 (acquisition debt of $500,000). Use Exhibit 8-5 and Tax Rate Schedulefor reference. a. What is Janet and Ray's AMT? Janet and Ray's AMT Required information (The following information applies to the questions displayed below.) In 2019, Janet and Ray are married filing jointly. They have five dependent children under 18 years of age. Janet and Ray's taxable income is $2,450,000, and they itemize their deductions as follows: state income taxes of $10,000, and mortgage interest expense of $25,000 (acquisition debt of $500,000). Use Exhibit 8-5 and Tax Rate Schedulefor reference. Download the Tax Form and enter the required values in the appropriate fields. Please right click on the attached Adobe document and select open in new window. Then, download the Tax Form and enter the required values in the appropriate fields. Save your completed Tax Form to your computer and then upload it here by clicking "Browse." Next, click "Save." Use 2019 tax rules regardless of year on tax form. k Disposition Alternative Minimum Tax-Individuals OMB No. 1545-0074 Form 2018 Department of the Treasury Go to www.irs.gov/Form 6251 for instructions and the latest information. Attachment Internal Revenue Service (99) Attach to Form 1040 or Form 1040NR. Sequence No. 32 Name(s) shown on Form 1040 or Form 1040NR Your social security number 1 Form 1040, line 8 2c ad 2 2k 2n 2 20 2g 4 2r 2t 3 Partl Alternative Minimum Taxable income (See instructions for how to complete each line.) 1 Enter the amount from Form 1040, line 10, if more than zero. If Form 1040, line 10, is zero, subtract lines 8 and 9 of Form 1040 from line 7 of Form 1040 and enter 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 2a une o b Tax refund from Schedule 1 (Form 1040), line 10 or line 21 2b c Investment interest expense (difference between regular tax and AMT). d Depletion (difference between regular tax and AMT) 2d e Net operating loss deduction from Schedule 1 (Form 1040), line 21. Enter as a positive amount 2e 24 Alternative tax net operating loss deduction 2f 2 g Interest from specified private activity bonds exempt from the regular tax 29 h Qualified small business stock, see instructions. 2h 23 i Exercise of incentive stock options (excess of AMT income over regular tax income) 21 Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A 21 o Depreciation on assets placed in service after 1986 (difference between regular tax and AMT) 21 m Passive activities (difference between AMT and regular tax income or loss) 2m n Loss limitations (difference between AMT and regular tax income or loss). o Circulation costs (difference between regular tax and AMT) p Long-term contracts (difference between AMT and regular tax income) 2p q Mining costs (difference between regular tax and AMT) r Research and experimental costs (difference between regular tax and AMT) s Income from certain installment sales before January 1, 1987 2s Intangible drilling costs preference 3 Other adjustments, including income-based related adjustments 4 Alternative minimum taxable income. Combine lines 1 through 3. (If married filing separately and line 4 is more than $718,800, see instructions. Alternative Minimum Tax (AMT) 5 Exemption. (If you were under age 24 at the end of 2018, see instructions.) If your filing status is ... AND line 4 is not over ... THEN enter on line 5... Single or head of household... $ 500,000 $ 70,300 Married filing jointly or qualifying widowler 1,000,000 109,400 Married filing separately 500,000 54,700 5 If line 4 is over the amount shown above for your filing status, see instructions. Subtract line 5 from line 4. If more than zero, go to line 7. If zero or less, enter -- here and on lines 7, 9, and 11, and go to line 10 6 7 If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter. If you reported capital gain distributions directly on Schedule 1 (Form 1040), line 13: you reported qualified dividends on Form 1040, line 3a; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured for the AMT, if necessary), complete Part Ill on the back and enter the amount from line 40 here. All others: If line 6 is $191,100 or less ($95,550 or less if married filing separately), multiply line 6 by 26% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3,822 ($1,911 if married filing separately) from the result. Alternative minimum tax foreign tax credit (see instructions). Tentative minimum tax. Subtract line 8 from line 7 10 Add Form 1040, line 11a (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 46. Subtract from the result any foreign tax credit from Schedule 3 (Form 1040), line 48. If you used Schedule J to figure your tax on Form 1040, line 11a, refigure that tax without using Schedule J before completing this line (see instructions) 11 AMT. Subtract line 10 from line 9. If zero or less, enter-O-. Enter here and on Schedule 2 Form 1040), line 45 11 For Paperwork Reduction Act Notice, see your tax return instructions. 4 Part II 8 9 8 9 10 Cat. No. 13600G Form 6251 (2018) 13 (Form 16 17 19 Form 6251 (2018) Page 2 Part III Tax Computation Using Maximum Capital Gains Rates Complete Part III only if you are required to do so by line 7 or by the Foreign Earned Income Tax Worksheet in the instructions. 12 Enter the amount from Form 6251, line 6. If you are filing Form 2555 or 2555-Ez, enter the amount from line 3 of the worksheet in the instructions for line 7 12 13 Enter the amount from line 6 of the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a, 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, if if necessary) (see instructions). If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter 14 Enter the amount from Schedule D 1040), line line 19 (as refigured for the AMT, if if necessary) (see instructions). If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter 14 15 If you did not complete a Schedule D Tax Worksheet for the regular tax or the AMT, enter the amount from line 13. Otherwise, add lines 13 and 14, and enter the smaller of that result or the amount from line 10 of the Schedule D Tax Worksheet (as refigured for the AMT, if necessary). If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter 15 16 Enter the smaller of line 12 or line 15 17 Subtract line 16 from line 12 18 If line 17 is $191,100 or less ($95,550 or less if married filing separately), multiply line 17 by 26% (0.26). Otherwise, multiply line 17 by 28% (0.28) and subtract $3,822 ($1,911 if married filing separately) from the result 18 19 Enter: $77,200 if married filing jointly or qualifying widow(er). $38,600 if single or married filing separately, or $51,700 if head of household. 20 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a, or the amount from line 14 of the Schedule D Tax Worksheet in the instructions for Schedule D (Form 1040), whichever applies (as figured for the regular tax). If you did not complete either worksheet for the regular tax, enter the amount from Form 1040, line 10; if zero or less, enter-O-. If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter 20 21 Subtract line 20 from line 19. If zero or less, enter-O- 21 22 Enter the smaller of line 12 or line 13 22 23 Enter the smaller of line 21 or line 22. This amount is taxed at 0% 23 24 Subtract line 23 from line 22. 24 Enter $425,800 if single $239,500 if married filing separately $479,000 if married filing jointly or qualifying widow(er) $452,400 if head of household 26 Enter the amount from line 21 27 Enter the amount from line 7 of the Qualified Dividends and Capital Gain Tax Worksheet in the instructions for Form 1040, line 11a, or the amount from line 19 of the Schedule D Tax Worksheet, whichever applies (as figured for the regular tax). If you did not complete either worksheet for the regular tax, enter the amount from Form 1040, line 10; if zero or less, enter-O-. If you are filing Form 2555 or Form 2555-Ez, see instructions for the amount to enter 27 28 Add line 26 and line 27 28 29 Subtract line 28 from line 25. If zero or less, enter-O- 29 30 Enter the smaller of line 24 or or line 29 30 31 Multiply line 30 by 15% (0.15) 31 Add lines 23 and 30 32 If lines 32 and 12 are the same, skip lines 33 through 37 and go to line 38. Otherwise, go to line 33. 33 Subtract line 32 from line 22 33 34 Multiply line 33 by 20% (0.20) 34 If line 14 is zero or blank, skip lines 35 through 37 and go to line 38. Otherwise, go to line 35. 35 Add lines 17, 32, and 33 35 36 Subtract line 35 from line 12 36 37 Multiply line 36 by 25% (0.25) 37 38 Add lines 18, 31, 34, and 37 39 If line 12 is $191,100 or less ($95,550 or less married filing separately), multiply line 12 by 26% (0.26). Otherwise, multiply line 12 by 28% (0.28) and subtract $3,822 ($1.911 if married filing separately) from the result 40 Enter the smaller of line 38 or line 39 here and on line 7. If you are filing Form 2555 or 2555-EZ, do not enter this amount on line 7. Instead, enter it on line 4 of the worksheet in the instructions for line 7 Form 6251 (2018) 25 Enter 25 26 ... 39 40