Question

Arthur Wesson is a single taxpayer and had $350,000 of alternative minimum taxable income for 2018....

Arthur Wesson is a single taxpayer and had $350,000 of alternative minimum taxable income for 2018.

Please answer both questions and show calculations:

1) Calculate Arthur's alternative minimum tax.

2) Would it make a difference if he were married? Assume no credits are available.

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Homework Answers

Answer #1
AMT Exemption Phased out 0
AMT Exemption Allowed 70300
Adjusted AMT Income (ADI minus AMT exemption allowed) 279700
AMTI minus Dividends and Capital  Gains 279700
AMT Income Taxed at AMT Rate 74486
AMT Income Taxed at  Regular Income Tax Rate 140491
AMT TAX = $ 0

Part 2

AMT Exemption Allowed 109400
Adjusted AMT Income (ADI minus AMT exemption allowed) 240600
AMTI minus Dividends and Capital  Gains 240600
AMT Income Taxed at AMT Rate 63538
AMT Income Taxed at  Regular Income Tax Rate 44303
AMT Tax = $ 19234.60
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