McGraw-Hill's Taxation of Individuals 3rd Edition by Brian Spilker,Benjamin Ayers,John Robinson,Edmund Outslay ,Ronald Worsham,John Barrick,Connie Weaver

Exercise 40

Sylvester files as a single taxpayer during 2011 and claims one personal exemption.He itemizes deductions for regular tax purposes.He paid charitable contributions of $7,000, real estate taxes of $1,000, state income taxes of $4,000 and interest on a home equity loan of $2,000.Sylvester's regular taxable income is $100,000.
a.What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car
b.What is Sylvester's AMTI if he used the home-equity loan proceeds to build a new garage next to his home