Fred and Wilma are married and each aged 67 years, with no dependents. Fred is legally blind. Their income and expenses are listed below. Compute their alternative minimum tax for 2020 showing ALL calculations. Also, please find and print the IRC subsection that describes the AMT exemption amounts.

Information

1. Salaries $151,000
2. Interest Income – State Bank 1,700
3. Interest Income – private activity bonds (issued 2013) 20,000
4. Gambling income 3,000
5. Dividend income (not qualified dividends) 2,000
6. Medical expenses (before AGI floor) 16,000
7. Gambling losses 6.000
8. State income taxes 3,500
9. Mortgage interest on home 4,600
10. Investment interest expense 2,100
11. Real estate taxes 3,200

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Answers As per given details please refer below answer The alternative minimum tax AMT ensures that high earners pay at least a minimum amount of fede... View the full answer