United States of America Tax help question that I am struggling with, thank you!

8.6.1

Dante Santana is an unmarried 29-year-old taxpayer with no dependents. Below is his current year taxable income and deductions, along with the single regular tax rate schedule and the alternative minimum tax (AMT) rate schedule. Dante itemized deductions in previous years. The current year standard deduction for single taxpayers is $12,200. Last year, Dante's itemized deductions totaled $15,000 and the standard deduction last year was $12,000. Using the taxable income and deductions summary and tax rate schedules provided in the below, calculate the amount of Dante's current year alternative minimum tax (AMT) liability and the regular income tax liability. Dante Santana's Current Year Taxable Income and Deductions Summary Income Gross revenue-rental property $ 223,000 Royalty income-oil wells $ 55,000 Interest income-corporate bonds 5,500 Interest income-local private activity bonds (issued in 2012) $ 8,000 State income tax refund from prior year $ 1,500 Deductions Rental property-MACRS depreciation* $ 47,000 Rental property-management fees $ 36,000 Property insurance-home $ 4,200 Property insurance-rental property $ 29,000 Real estate taxes-home $ 11,000 Real estate taxes-rental property $ 45,000 Mortgage interest-home $ 20,000 Mortgage interest-rental property $ 23,000 Charitable contributions $ 16,000 State and local income taxes $ 19,000 Percentage depletion-oil wells (excess over adjusted cost basis) $ 21,000 * Depreciation for alternative minimum tax purposes: $33,000 Individual Tax Rate Schedules Use the links below to access the rate schedules needed for the assignment. SINGLE REGULAR TAX RATE SCHEDULE Single Regular Tax Rate Schedule Taxable Income: Tax Liability: Over - But not over- of amount over - $0 $9,700 10% $0 $9,700 $39,475 $970.00 + 12% $9,700 $39,475 $84,200 $4,543.00 + 22% $39,475 $84,200 $160,725 $14,382.50 + 24% $84,200 $160,725 $ 204,100 $32,748.50 32% $160,725 $204,100 $510,300 $46,628.50 + 35% $204,100 $510,300 $153,798.50 + 37% $510,300 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Tentative Minimum Tax: Over - But not over- Of amount over- $0 $194,800 26% $0 $194,800 $50,648.00 + 28% $194,800 $160,725 $204,100 $32,748.50 + 32% $160,725 $204,100 $510,300 $46,628.50 + 35% $204,100 $510,300 $153,798.50 + 37% $510,300 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Tentative Minimum Tax: Over - But not over- of amount over - $0 $194,800 26% $0 $194,800 $50,648.00 + 28% $194,800 AMT EXEMPTION AMOUNT: SINGLE TAXPAYERS Alternative Minimum Tax (AMT) Exemption Amount for Single Taxpayer: Exemption Exemption Phase-out Begins at AMTI Exemption Phase-out Complete at AMTI $71,700 $510,300 $797,100 Exemption is phased out by 25 cents for every dollar that AMTI exceeds the threshold amount. Dante Santana is an unmarried 29-year-old taxpayer with no dependents. Below is his current year taxable income and deductions, along with the single regular tax rate schedule and the alternative minimum tax (AMT) rate schedule. Dante itemized deductions in previous years. The current year standard deduction for single taxpayers is $12,200. Last year, Dante's itemized deductions totaled $15,000 and the standard deduction last year was $12,000. Using the taxable income and deductions summary and tax rate schedules provided in the below, calculate the amount of Dante's current year alternative minimum tax (AMT) liability and the regular income tax liability. Dante Santana's Current Year Taxable Income and Deductions Summary Income Gross revenue-rental property $ 223,000 Royalty income-oil wells $ 55,000 Interest income-corporate bonds 5,500 Interest income-local private activity bonds (issued in 2012) $ 8,000 State income tax refund from prior year $ 1,500 Deductions Rental property-MACRS depreciation* $ 47,000 Rental property-management fees $ 36,000 Property insurance-home $ 4,200 Property insurance-rental property $ 29,000 Real estate taxes-home $ 11,000 Real estate taxes-rental property $ 45,000 Mortgage interest-home $ 20,000 Mortgage interest-rental property $ 23,000 Charitable contributions $ 16,000 State and local income taxes $ 19,000 Percentage depletion-oil wells (excess over adjusted cost basis) $ 21,000 * Depreciation for alternative minimum tax purposes: $33,000 Individual Tax Rate Schedules Use the links below to access the rate schedules needed for the assignment. SINGLE REGULAR TAX RATE SCHEDULE Single Regular Tax Rate Schedule Taxable Income: Tax Liability: Over - But not over- of amount over - $0 $9,700 10% $0 $9,700 $39,475 $970.00 + 12% $9,700 $39,475 $84,200 $4,543.00 + 22% $39,475 $84,200 $160,725 $14,382.50 + 24% $84,200 $160,725 $ 204,100 $32,748.50 32% $160,725 $204,100 $510,300 $46,628.50 + 35% $204,100 $510,300 $153,798.50 + 37% $510,300 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Tentative Minimum Tax: Over - But not over- Of amount over- $0 $194,800 26% $0 $194,800 $50,648.00 + 28% $194,800 $160,725 $204,100 $32,748.50 + 32% $160,725 $204,100 $510,300 $46,628.50 + 35% $204,100 $510,300 $153,798.50 + 37% $510,300 ALTER. MINIMUM TAX (AMT) RATE SCHEDULE Alternative Minimum Tax (AMT) Rate Schedule AMT Base: Tentative Minimum Tax: Over - But not over- of amount over - $0 $194,800 26% $0 $194,800 $50,648.00 + 28% $194,800 AMT EXEMPTION AMOUNT: SINGLE TAXPAYERS Alternative Minimum Tax (AMT) Exemption Amount for Single Taxpayer: Exemption Exemption Phase-out Begins at AMTI Exemption Phase-out Complete at AMTI $71,700 $510,300 $797,100 Exemption is phased out by 25 cents for every dollar that AMTI exceeds the threshold amount