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Scenario $1$: Alternative Minimum Tax $($AMT$)$ Deep Dive

Wages: $$250,000$

Significant itemized deductions:

State and Local Taxes: $$48,000$

Medical Expenses $($exceed AGI floor$)$: $$32,000$

Charitable Contributions: $$20,000$

Interest & Dividend Income: $$2,500$

Long$-$Term Capital Gains: $$30,000$

Allowable deduction for self$-$employment tax: None

Calculate:

Regular Taxable Income & Tax Liability

AMT Taxable Income & Potential AMT Liability

Analyze whether the taxpayer is likely subject to AMT.