Joan and Matthew are married, have 2 children, and report the following items on their current years
Question:
Determine Joan and Matthews regular tax liability and, if applicable, the amount of their alternative minimum tax. Write a memo to Joan and Matthew explaining the adjustments they will have to make in computing their alternative minimumtax.
Transcribed Image Text:
Adjusted gross income Less: Deductions from adjusted gross income $158,000 Medical expenses Less: 7.5% × $158,000 Home mortgage interest Home equity loan (for college education) State income taxes S 14,000 (11,850 2,150 13,500 9,000 11,000 6,500 7,000 Property taxes Charita ble contributions Miscellaneous itemized deduction Less: 2% × $158,000 Total itemized deductions S 4,000 (3,160) 840 (49,990) (14,800) Less: Exemptions (4 x $3,700)
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Related Book For
Concepts In Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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