Rob an unmarried taxpayer filing single, has no dependents and reports the following items on his 2016

federal income tax return:

Adjusted gross income

$70,000

Taxable income

50,000

Regular tax liability

8,271

Tax preferences

13,000

Itemized deductions including:

Charitable contributions

9,500

Medical expenses (before AGI floor)

8,400

Mortgage interest on personal residence

11,000

State income taxes

4,700

Real estate taxes

6,000

a.

What is the amount of Rob's AMT adjustments related to itemized deductions?

b.

What is Rob's AMT liability for 2016? PERSONAL AND DEPENDENCY EXEMPTION AND PHASE-OUTS Personal and dependency exemption $4,050 Phase-outs for high income taxpayers: Personal and dependency exemptions are reduced by 2% for each $2,500 increment (or part of increment) for AGI above the threshold amount. Itemized deductions are reduced by 3% for each dollar of AGI above the threshold amounts (taxpayers cannot lose more than 80% of their allowable itemized deductions). For both provisions, the AGI threshold amounts are: Married individuals filing joint returns and surviving spouses $311,300 Heads of households 285,350 Unmarried individuals (other than surviving spouses and heads of households) 259,400 Married individuals filing separate returns 155,650

Alternative Minimum Tax Amount

If ATMI minus the exemption amount is: The Tax Is:

Over- But Not Over- Of the amount over-

$0 $186,300 26% $0

$186,300* $48,438* + 28% $186,300

*$186,300MFS and $48,438MFS for married taxpayers filing separately.

2016 Basic 2016 Phaseout

AMT exemption and phase-out amounts: Exemption Threshold

Unmarried individuals (other than surviving spouses and heads of households)

$53,900 $119,700

Married individuals filing joint returns and surviving spouses

$83,800 $159,700

Married individuals filing separate returns

$41,900 $79,850

Complete the table below to determine Rob's total AMT adjustments related to itemized deductions. (Assume that Rob is under age 65. If a box is not used in the table, leave the box empty; do not select a label or enter a zero.)

AMT adjustments:
Total adjustments