In 2022, Nadia has $100,000 of regular taxable income. She itemizes her deductions as follows: real property taxes of $1,500, state income taxes of $2,000, and mortgage interest expense of $10,000 (acquisition indebtedness of $200,000). In addition, she receives tax-exempt interest of $1,000 from a municipal bond (issued in 2006) that was used to fund a new business building for a (formerly) out-of-state employer. Finally, she received a state tax refund of $300 from the prior year.
a) What is Nadia’s AMTI this year if she deducted $15,000 of itemized deductions last year (including a total of $4,000 of real property taxes and state income taxes) and did not owe any AMT last year? Complete Form 6251 (through line 4) for Nadia.
b) What is Nadia’s AMTI this year if she deducted the standard deduction last year and did not owe any AMT last year? Complete Form 6251 (through line 4) for Nadia.

From 6251

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EXHIBIT 8-4 2021 Form 6251 (Page 1 of 2) Form 6251 Department of the Treasury Internal Revenue Service (99) Name(s) shown on Form 1040, 1040-SR, or 1040-NR b c d Part I Alternative Minimum Taxable Income (See instructions for how to complete each line.) Enter the amount from Form 1040 or 1040-SR, line 15, if more than zero. If Form 1040 or 1040-SR, line 15, is zero, subtract line 14 of Form 1040 or 1040-SR from line 11 of Form 1040 or 1040-SR and enter the result here. (If less than zero, enter as a negative amount.). ... 1 2a If filing Schedule A (Form 1040), enter the taxes from Schedule A, line 7; otherwise, enter the amount from Form 1040 or 1040-SR, line 12a. j k Alternative Minimum Tax-Individuals 1 I ►Go to www.irs.gov/Form6251 for instructions and the latest information. ► Attach to Form 1040, 1040-SR, or 1040-NR. e Net t operating loss deduction from Schedule 1 (Form 1040), line 8a. Enter as a positive amount Alternative tax net operating loss deduction f duction g Interest from specified private activity bonds exempt from the regular tax h Qualified small business stock, see instructions i Exercise of incentive stock options (excess of AMT income over regular tax income) Fa Estates and trusts (amount from Schedule K-1 (Form 1041), box 12, code A) Disposition of property (difference between AMT and regular tax gain or loss) Depreciation on assets placed in service after 1986 (difference between regular tax and AMT). m Passive activities (difference between AMT and regular tax income or loss) n Loss limitations (difference between AMT and regular tax income or loss) o Circulation costs (difference between regular tax and AMT). p Long-term contracts (difference between AMT and regular tax income) q Mining costs (difference between regular tax and AMT) r Research and experimental costs (difference between regular tax and AMT) s Income from certain installment sales before January 1, 1987. t Intangible drilling costs preference..... 3 Other adjustments, including income-based related adjustments Tax refund from Schedule 1 (Form 1040), line 1 or line 8z Investment interest expense (difference between regular tax and AMT) Depletion (difference between regular tax and AMT) 8 9 10 - ... 4 Alternative minimum taxable income. Combine lines 1 through 3. (If married filing separately and line 4 is more than $752,800, see instructions.) Part II Alternative Minimum Tax (AMT) 5 Exemption. IF your filing status is ... Single or head of household. ... Married filing jointly or qualifying widow(er) Married filing separately..... If line 4 is over the amount shown above for your filing status, see instructions. AND line 4 is not over... $ 523,600 1,047,200 523,600 THEN enter on line 5... $ 73,600 114,600 57,300 6 Subtract line 5 from line 4. If more than zero, go to line 7. If zero or less, enter -0- here and on lines 7, 9, and 11, and go to line 10... 7. If you are filing Form 2555, see instructions for the amount to enter. sen Your social security number • If you reported capital gain distributions directly on Form 1040 or 1040-SR, line 7; you reported qualified dividends on Form 1040 or 1040-SR, line 3a; or you had a gain on both lines 15 and 16 of Schedule D (Form 1040) (as refigured for the AMT, if necessary), complete Part III on the back and enter the amount from line 40 here. • All others: If line 6 is $199,900 or less ($99,950 or less if married filing separately), multiply line 6 by 26% (0.26). Otherwise, multiply line 6 by 28% (0.28) and subtract $3,998 ($1,999 if married filing separately) from the result. Alternative minimum tax foreign tax credit (see instructions) Tentative minimum tax. Subtract line 8 from line 7 Add Form 1040 or 1040-SR, line 16 (minus any tax from Form 4972), and Schedule 2 (Form 1040), line 2. Subtract from the result Schedule 3 (Form 1040), line 1 and any negative amount reported on Form 8978, line 14 (treated as a positive number). If zero or less, enter -0-. If you used Schedule J to figure your tax on Form 1040 or 1040-SR, line 16, refigure that tax without using Schedule J before completing this line. See instructions..... ...... ... 11 AMT. Subtract line 10 from line 9. If zero or less, enter -0-. Enter here and on Schedule 2 (Form 1040), line 1 For Paperwork Reduction Act Notice, see your tax return instructions. Cat. No. 13600G 1 2a 2b 2c 2d 2e 2f 2g 2h 21 2j 2k 21 2m 2n 20 2p 2q 2r 2s 2t 3 4 5 6 7 OMB No. 1545-0074 2021 Attachment Sequence No. 32 8 9 10 11 Form 6251 (2021)