Arthur Wesson, an unmarried individual who is age 68, reports taxable income of $160,000 in 2017. He records positive AMT adjustments of $40,000 and preferences of $35,000. Arthur itemizes his deductions, and his regular tax liability in 2017 is $37,050.
a. What is Arthur’s AMT?
b. What is the total amount of Arthur’s tax liability?
c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthur’s address is 100 Colonel’s Way, Conway, SC 29526.