Question

In 2017, Deon and NeNe are married filing jointly. They have three dependent children under 18 years of age. Deon and NeNe’s AGI is $813,800, their taxable income is $722,750, and they itemize their deductions as follows: real property taxes of $10,000, state income taxes of $40,000, miscellaneous itemized deductions of $4,000 (subject to but in excess of 2% AGI floor), charitable contributions of $11,050, and mortgage interest expense of $41,000 ($11,000 of which is attributable to a home-equity loan used to buy a new car). Use Tax Rate Schedule for reference.

Problem 8-65 Part a a. What is Deon and NeNe's AMT?

Answer #1

Calculaiton of Income for AMT.

Net Taxable Income - $722,750

Add :-

Property Taxes - 10,000

State Taxes - 40,000

Itemized deduction - 0 (As they exceed 2% of AGI)

Charitable Donation - 0 (As they are allowed deduction for AMT)

Morgage Interest Expense -41,000 ( Interest attributable to buy car is not allowed as a deduction)

Total AMT Income - 813,750

Since it is below the threshold of $1,000,000 for Joint filler exemption is $ 109,400, therefore taxable AMT - (813,750 - 109400) = 704350. Tax rate 28 % will apply =(704350*0.28) = $197,218.

In 2017, Janet and Ray are married filing jointly. They have
five dependent children under 18 years of age. Janet and Ray’s
taxable income is $140,000, and they itemize their deductions as
follows: real property taxes of $5,000, state income taxes of
$9,000, and mortgage interest expense of $15,000. a. What is Janet
and Ray’s AMT?

In 2019, Deon and NeNe are married filing jointly. Deon and
NeNe’s taxable income is $1,190,000, and they itemize their
deductions as follows: real property taxes of $17,700, charitable
contributions of $24,250, and mortgage interest expense of $48,400
($700,000 acquisition debt for home). Use Exhibit 8-5 and Tax Rate
Schedule for reference.
rev: 02_29_2020_QC_CS-202942
a. What is Deon and NeNe's AMT?
**** This is incorrect : Taxable
Income 1,190,000Less:Charitable
contributions
24,250Mortagage Interest
Expense
48,400
(72,650) 1,117,350Less:AMT
Exemption
111,700AMT
base
1,005,650AMT=AMT*26% ...

[The following information applies to the questions displayed
below.] In 2019, Deon and NeNe are married filing jointly. Deon and
NeNe’s taxable income is $1,190,000, and they itemize their
deductions as follows: real property taxes of $17,700, charitable
contributions of $24,250, and mortgage interest expense of $48,400
($700,000 acquisition debt for home). Use Exhibit 8-5 and Tax Rate
Schedule for reference. rev: 02_29_2020_QC_CS-202942 a. What is
Deon and NeNe's AMT

Steve and Sue are married with three dependent children. Their
2017 joint income tax return shows $389,000 of AGI and $60,000 of
itemized deductions made up of $30,000 of state income taxes and
$30,000 of charitable contributions. Calculate the following
amounts: In your computations, round any percentage up the nearest
whole percent. If required, round your answers to the nearest
dollar. a. Allowable itemized or standard deduction amount $ b.
Allowable exemptions deduction amount $ c. Taxable income $

Bruno is married filing separate and has one dependent. His AGI
is $164,000 for 2018. He incurred the following expenses and losses
during the year:
Medical expenses before the 7.5%-of-AGI limitation
$9,900
State and local income taxes
5,600
State sales tax
1,800
Real estate taxes
6,100
Home mortgage interest
7,000
Credit card interest
2,350
Charitable contribution
3,200
Casualty loss before 10% limitation (after $100 floor; not in a
Federally declared disaster area)
19,000
Unreimbursed employee expenses subject to the 2%-of-AGI...

Donna and Brian are married and file a joint return and together
have an Adjusted Gross Income of $180,000. Married filing jointly
standard deduction is $24,800 for 2020. They own their home. They
have the following itemized deductions: Should Donna and Brian
itemize their deductions or use the standard deduction?
Medical Bills and Health Insurance
$26,000
Property tax
$1,250
Mortgage Interest
expense
$5,500
State sales taxes
$7,000
Miscellaneous
deductions
$3,600

Using the married filing jointly status and their income and
expense statement, calculate the 2014 tax liability for Shameka
and Curtis Williams. First use the standard deduction, and then
use the following itemized deductions:
Income
Expenses
Earned income
$55,000.00
Home mortgage interest
$8,200.00
Interest income
1,700.00
Real estate and state income taxes
3,900.00
Miscellaneous deductions
500.00
Explain to the Williams which method they should use and
why.
Shameka and Curtis' total gross income for the 2014 tax year is
$_____....

Problem 8-64 (LO 8-2) [The following information applies to the
questions displayed below.] In 2017, Janet and Ray are married
filing jointly. They have five dependent children under 18 years of
age. Janet and Ray’s taxable income is $140,000, and they itemize
their deductions as follows: real property taxes of $5,000, state
income taxes of $9,000, and mortgage interest expense of $15,000
(not a home-equity loan). (Use 2017 AMT exemption amounts). Use Tax
Rate Schedule for reference. (Round your intermediate...

3. Married taxpayers filing jointly, but living apart from their
spouses cannot contribute to a regular IRA if their AGI exceeds
$40,000.
a. True
b. False
7. A taxpayer is allowed to take an itemized deduction for a
casualty loss resulting from damage to the taxpayer's automobile
caused by a collision, even if the taxpayer was at fault.
a. True
b. False
8. State inheritance taxes, estate taxes, and gift taxes are not
deductible as itemized deductions.
a. True
b....

Steve and Sue are married with three dependent children. Their
2017 joint income tax return shows $389,000 of AGI and $60,000 of
itemized deductions made up of $30,000 of state income taxes and
$30,000 of charitable contributions. Calculate the following
amounts: In your computations, round any percentage up the nearest
whole percent. If required, round your answers to the nearest
dollar.
a. Allowable itemized or standard deduction amount $
b. Allowable exemptions deduction amount $
c. Taxable income $
-------------------------------------------------------------------------------------------------------------------------------------------------------------...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 15 minutes ago

asked 22 minutes ago

asked 28 minutes ago

asked 52 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago