Arthur Wesson, an unmarried individual who is age 68, reports 2015 taxable income of $160,000 and a

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Arthur Wesson, an unmarried individual who is age 68, reports 2015 taxable income of $160,000 and a regular tax liability of $38,000. Arthur itemizes his deductions, and he records AMT positive adjustments of $40,000 and tax preferences of $35,000.
a. What is Arthur's AMT?
b. What is the total amount of Arthur's tax liability?
c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthur's address is 100 Colonel's Way, Conway, SC 29526.
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South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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