Essay
Darin's,who is age 30,records itemized deductions in calculating 2016 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...
View Answer
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