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?
| Regular Taxable Income | $ 140,000.00 | 1 |
| Personal Exemptions | $ 28,350.00 | 2 |
| Real Property Tax | $ 5,000.00 | 3 |
| State Income Tax | $ 9,000.00 | 4 |
| AMTI | $ 182,350.00 | 5=1+2+3+4 |
| Full Exemption | $ 84,500.00 | 6 = As per rules for MFJ |
| Phase out exmption | $ 5,362.50 | 7 = (182350-160900)*25% |
| AMT Exmption | $ 79,137.50 | 8 = 6-7 |
| AMT Base | $ 103,212.50 | 9 = 5-8 |
| AMT Rate | 26% | 10 |
| Tentative AMT | $ 26,835.25 | 11 = 9*10 |
| Regular tax | $ 26,477.50 | 12 |
| AMT | $ 357.75 | 13 = 11-12 |
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