Brian and Jennifer are a married couple who believe they may be subject to the AMT this year. Currently, they calculate their alternative minimum taxable income (AMTI) to be $160,000.
a. What is their AMT exemption amount?
b. They are considering an opportunity that would allow them to earn additional income this year. As a result of this additional income, they believe that their AMTI will increase by $200,000. What will their AMT exemption be if they recognize the additional income?