Dylan is a single taxpayer with $600,000 of taxable income, which results in a regular tax liability

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Dylan is a single taxpayer with $600,000 of taxable income, which results in a regular tax liability of $184,955 in 2022. Dylan is extremely cautious about being subject to AMT and wants to know how much AMT preferences or adjustments she can afford without being subject to AMT.
a. Compute the amount of preference and adjustments it would take for Dylan to have an AMT.
b. Comment on why it takes so many adjustments for Dylan to enter AMT.

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Pearsons Federal Taxation 2023 Comprehensive

ISBN: 9780137840656

36th Edition

Authors: Timothy J. Rupert, Kenneth E. Anderson, David S Hulse

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