Darin's, Who Is Age 30, Has Itemized Deductions in Calculating

Essay

Darin's, who is age 30, has itemized deductions in calculating 2014 taxable income as follows:
$$\begin{array} { l r } \text { Medical expenses } [ \$ 15,000 - 10 \% ( \$ 100,000 ) ] & \$ 5,000 \\\text { Mortege interest on personal residence } & 7,000 \\\text { State income taxes } & 4,000 \\\text { Real property taxes } & 4,500 \\\text { Personal property taxes } & 2,500 \\\text { Casualty loss } [ \$ 14,000 - ( 10 \% \times \$ 100,000 ) ] & 4,000 \\\text { Charitable contributions } & 3,500 \\\text { Gambling los5es (\$3,200 limited to gambling income of } \$ 1,000 ) & 1,000 \\\text { Miscellaneous itemized deductions } [ \$ 2,500 - 2 \% ( \$ 100,000 ) ] & 500 \\\text { Itemized deductions }& \$ 32,000\end{array}$$
a. Calculate Darin's itemized deductions for AMT purposes using the direct method.
b. Calculate Darin's itemized deductions for AMT purposes using the indirect method.