WalterWalter and Maxine Sullivan are a married couple filing jointly. They have no children and report the following items in 2016:

TOOLS:

Taxable income

$66,000

Tax preferences

16,000

AMT adjustments related to itemized deductions

22,000

Regular tax liability

8,973

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

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Requirement a and b. What is the

Sullivan's

AMT liability? What would be

Walter'sWalter's

AMT liability if he were an unmarried taxpayer filing single with a regular tax liability of

$ 12 comma 271$12,271?

Select the labels and complete the table below to determine the

Sullivan'sSullivan's

alternative minimum tax (AMT). Then, determine

Walter'sWalter's

AMT liability if he were an unmarried taxpayer filing single with a regular tax liability of

$ 12 comma 271$12,271.

(Complete all answer boxes. Enter a "0" there is no AMT liability.)

(a)

(b)

Sullivan's AMT

Walter's AMT

Plus:

Alternative minimum taxable income (AMTI)

Minus:

Alternative minimum tax base amount

%

%

Tentative minimum tax

Minus:

Alternative minimum tax (AMT)

Choose from any list or enter any number in the input fields and then click Check Answer.