Prepare Form 6251, Alternative Minimum Tax Individuals, for Peter and Kristina Wright using the information provided.
Question:
Prepare Form 6251, Alternative Minimum Tax—Individuals, for Peter and Kristina Wright using the information provided. Your instructor will provide a blank Form 6251.
Peter K. (SSN 621-11-7675) and Kristina E. Wright (SSN 375-04-8753) file a joint return and claim five dependents. During 2020, their regular taxable income and tax liability were as follows:
Salaries |
| $180,000 |
Interest income |
| 3,000 |
Adjusted gross income |
| $183,000 |
Itemized deductions: |
|
|
Charitable contributions | $3,000 |
|
State and local property taxes | 7,500 |
|
State and local income taxes | 2,250 |
|
Home mortgage interest | 17,000 | (29,750) |
Taxable income |
| $153,250 |
Tax liability |
| $ 25,295 |
The Wrights received $14,000 of tax-exempt interest from a specified private activity bond purchased in 2005. In addition, Peter paid $5,000 for $125,000 of his employer’s shares through an incentive stock option.
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella