Question

1.Sylvester files as a single taxpayer during 2015 and claims one personal exemption. He itemizes deductions for regular tax purposes. He paid charitable contributions of $9,100, real estate taxes of $2,800, state income taxes of $6,900, and interest on a home-equity loan of $2,300. Sylvester’s regular taxable income is $188,000.

What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car?

What is Sylvester's AMTI if he used the home-equity loan proceeds to build a new garage next to his home? 2. Rasheed works for Company A, earning $266,000 in salary during 2015. Assuming he has no other sources of income, what amount of FICA tax will Rasheed pay for the year?

Answer 1

As per the rules and regulations I am able ato solve only one question at a time,If you want to solve another question post it again we will help you 1 a) Sylvester's AMT is $203950

b) Sylvester's AMT is $201650

Note: Home equity loan interest is genarally deducted for regular tax purposes regardless of how the proceeds are used. However interest on home equity loan is deductible for AMT purposes only when the proceeds of the loan is used to acquire or substantially improve the home.

:Charitable contributions are deductible for both regular tax and AMT purposes,thus no AMT adjustment is required for these.