In 2022, Deon and NeNe are married filing jointly. Deon and NeNe's taxable income (all ordinary)...
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In 2022, Deon and NeNe are married filing jointly. Deon and NeNe's taxable income (all ordinary) is $1,170,400, and they itemize their deductions as follows: real property taxes of $11,900, charitable contributions of $27,150, and mortgage interest expense of $49,200 ($700,000 acquisition debt for home). Use Exhibit 8-5 and Tax Rate Schedule for reference. a. What is Deon and NeNe's AMT? EXHIBIT 8-5 2022 AMT Exemptions Filing Status Married filing jointly Married filing separately Head of household and single Exemption $118,100 59,050 75,900 Phase-Out Begins at This Level of AMTI $1,079,800 539,900 539,900 Phase-Out Complete for This Level of AMTI $1,552,200 776,100 843,500 If taxable income is over:But not over: $ 10,275 $ 41,775 $ 89,075 $ 170,050 $215.950 $ 539,900 $ 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $ 215,950 $ 539,900 $ 0 $ 20,550 $ 83,550 $ 178,150 $ 340,100 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 431,900 $ 647,850 $ 20,550 $ 83,550 $ 178,150 $ 340,100 $431,900 $ 647,850 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,650 $ 55,900 $ 89,050 $ 170,050 $215,950 $ 539,900 The tax is: $ 14,650 $ 55,900 $ 89,050 $ 170,050 $215,950 $539,900 10% of taxable income $1,027.50 plus 12% of the excess over $10,275 $4,807.50 plus 22% of the excess over $41,775 $15,213.50 plus 24% of the excess over $89,075 $34,647.50 plus 32% of the excess over $170,050 $49,335.50 plus 35% of the excess over $215,950 $162,718 plus 37% of the excess over $539,900 The tax is: 10% of taxable income $2,055 plus 12% of the excess over $20,550 | $9,615 plus 22% of the excess over $83,550 $30,427 plus 24% of the excess over $178,150 $69,295 plus 32% of the excess over $340,100 $98,671 plus 35% of the excess over $431,900 $174,253.50 plus 37% of the excess over $647,850 The tax is: 10% of taxable income $1,465 plus 12% of the excess over $14,650 $6,415 plus 22% of the excess over $55,900 $13,708 plus 24% of the excess over $89,050 | $33,148 plus 32% of the excess over $170,050 $47,836 plus 35% of the excess over $215,950 $161,218.50 plus 37% of the excess over $539,900 In 2022, Deon and NeNe are married filing jointly. Deon and NeNe's taxable income (all ordinary) is $1,170,400, and they itemize their deductions as follows: real property taxes of $11,900, charitable contributions of $27,150, and mortgage interest expense of $49,200 ($700,000 acquisition debt for home). Use Exhibit 8-5 and Tax Rate Schedule for reference. a. What is Deon and NeNe's AMT? EXHIBIT 8-5 2022 AMT Exemptions Filing Status Married filing jointly Married filing separately Head of household and single Exemption $118,100 59,050 75,900 Phase-Out Begins at This Level of AMTI $1,079,800 539,900 539,900 Phase-Out Complete for This Level of AMTI $1,552,200 776,100 843,500 If taxable income is over:But not over: $ 10,275 $ 41,775 $ 89,075 $ 170,050 $215.950 $ 539,900 $ 0 $ 10,275 $ 41,775 $ 89,075 $ 170,050 $ 215,950 $ 539,900 $ 0 $ 20,550 $ 83,550 $ 178,150 $ 340,100 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: $ 431,900 $ 647,850 $ 20,550 $ 83,550 $ 178,150 $ 340,100 $431,900 $ 647,850 Schedule Z-Head of Household If taxable income is over: But not over: $ 0 $ 14,650 $ 55,900 $ 89,050 $ 170,050 $215,950 $ 539,900 The tax is: $ 14,650 $ 55,900 $ 89,050 $ 170,050 $215,950 $539,900 10% of taxable income $1,027.50 plus 12% of the excess over $10,275 $4,807.50 plus 22% of the excess over $41,775 $15,213.50 plus 24% of the excess over $89,075 $34,647.50 plus 32% of the excess over $170,050 $49,335.50 plus 35% of the excess over $215,950 $162,718 plus 37% of the excess over $539,900 The tax is: 10% of taxable income $2,055 plus 12% of the excess over $20,550 | $9,615 plus 22% of the excess over $83,550 $30,427 plus 24% of the excess over $178,150 $69,295 plus 32% of the excess over $340,100 $98,671 plus 35% of the excess over $431,900 $174,253.50 plus 37% of the excess over $647,850 The tax is: 10% of taxable income $1,465 plus 12% of the excess over $14,650 $6,415 plus 22% of the excess over $55,900 $13,708 plus 24% of the excess over $89,050 | $33,148 plus 32% of the excess over $170,050 $47,836 plus 35% of the excess over $215,950 $161,218.50 plus 37% of the excess over $539,900
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Related Book For
Taxation Of Individuals And Business Entities 2023 Edition
ISBN: 9781265790295
14th Edition
Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham
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