Tax Return Problem 3 Nathan is married with two children and has AGI of $405,000. He also has the following AMT adjustments and preferences: a. Itemized deductions: Itemized Deduction Medical after floor Taxes Mortgage interest Charitable Regular Tax AMT Deduction AMT Adjustment $5,375 34,354 14,900 contributions 18,000 b. Depreciation of a rental property purchased in August 2010 for $210,000. c. Depreciation on personal property: MACRS Date Asset Purchased Cost Computer 1 02/12/17 $2,900 Furniture 1 02/12/17 12,000 Life/ MACRS AMT AMT Depreciation Depreciation Adjustment d. Incentive stock option: Nathan exercises options to purchase 3,000 shares at $19 per share when the market value is $26. Prepare Form 6251 for the calculation of AMT. The regular tax is $76,183.36 We have provided selected filled-in source documents that are available in Connect. 36 This regular tax number may vary slightly if software is used to complete this problem. This number was calculated using the tax rate schedules published prior to software and tax table publication dates.