Essay
Darin's,who is age 30,has itemized deductions in calculating 2015 taxable income as follows. Medical expenses [$15,000 - 10%($100,000)] $ 5,000 Mortgage interest on personal residence 7,000 State income taxes 4,000 Real property taxes 4,500 Personal property taxes 2,500 Casualty loss [$14,000 (after $100 floor) - (10% × $100,000)] 4,000 Charitable contributions 3,500 Gambling losses ($3,200 limited to gambling income of $1,000) 1,000 Miscellaneous itemized deductions [$2,500 - 2%($100,000)] 500 Itemized deductions $32,000
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.
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a.For AMT purposes,the allowable item...View Answer
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Correct Answer:
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a.For AMT purposes,the allowable item...
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