Jeff and Grace, both age 26, are married and file jointly in 2021. Jeff has a salary
Question:
Jeff and Grace, both age 26, are married and file jointly in 2021. Jeff has a salary of $100,000 and Grace's salary is $150,000. The couple received $30,000 private activity bond municipal interest income and paid $3,000 related investment interest expense. Grace exercised an incentive stock option and purchased $100,000 worth of her employer’s stock for $20,000. Their itemized deductions include medical expenses of $15,000, charitable contributions of $10,000, real estate taxes of $5,000, state income taxes of $8,000, and mortgage interest of $10,000 on $400,000 of acquisition indebtedness on their home purchased in 2020. Compute the couple's tentative minimum tax for 2021?
Group of answer choices
$54,074
$57,434
$57,824
$58,274
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill