Wolfgang is age 33. His AGI is $125,000. He reports the following itemized deductions for the year.
Medical expenses [$15,000 - (10% × $125,000)] ...................................$ 2,500
State income taxes .........................................................................4,200
Charitable contributions ...................................................................5,000
Home mortgage interest on his personal residence .....................................6,000
Casualty loss (after $100 and 10% reductions) .........................................1,800
Miscellaneous itemized deductions [$3,500 - (2% × $125,000)] ....................1,000
..............................................................................................$20,500
a. Calculate Wolfgang's itemized deductions for AMT purposes.
b. What is the total amount of the taxpayer's AMT adjustments for these items?
c. Use the solution to part (b) to complete Part I of Form 6251, the AMT form for individuals.