Question
What's the correct answer for (b)? Renee and Sanjeev Patel, who are married, reported taxable income of $1,008,000 for 2019. They incurred positive AMT adjustments
What's the correct answer for (b)?
Renee and Sanjeev Patel, who are married, reported taxable income of $1,008,000 for 2019. They incurred positive AMT adjustments of $75,000 and tax preference items of $67,500. The Patels itemize their deductions.
a. Compute the Patels' alternative minimum taxable income (AMTI) for 2019.
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The reconciliation of taxable income to AMTI is accomplished by entering reconciling items to account for differences between regular income tax provisions and AMT provisions. These reconciling items are referred to as AMT adjustments or tax preferences. Most adjustments relate to timing differences that arise because of separate regular income tax and AMT treatments.
b. Compute the Patel's tentative minimum tax.
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