Lynn, age 45, is single and has no dependents. Her income and expenses for 2017 are reported
Question:
Lynn, age 45, is single and has no dependents. Her income and expenses for 2017 are reported as follows.
Income—
Salary ..................................................................................$33,000
Taxable interest on corporate bonds ............................. 3,700
Business income ............................................................... 64,000
Expenditures—
Medical expenses .............................................................. 12,000
State income taxes ............................................................ 6,000
Real estate taxes ................................................................ 8,500
Mortgage (qualified housing) interest ............................ 9,200
Investment interest ........................................................... 5,500
Cash contributions to various charities .......................... 2,900
The $64,000 business income is from Apex Office Supplies Company, a sole proprietorship that Lynn owns and operates. Apex claimed MACRS depreciation of $3,175 on real and personal property used in the business. AMT depreciation on the property would have been $2,500. Lynn received interest of $30,000 on City of Pensacola private activity bonds that were issued in 2011.
Based on the information presented above, compute Lynn’s AMT for 2017.
Step by Step Answer:
South Western Federal Taxation Individual Income Taxes 2018
ISBN: 9781337385893
41st Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young, Nellen