Ch15-28 (2) - CHAPTER 15 ALTERNATIVE MINIMUM TAX 1 Donna...

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CHAPTER 15 ALTERNATIVE MINIMUM TAX 1. Donna, who is single and age 33, provides you with the following information from her financial records for 2009. Regular income tax liability $ 27,578 AMT adjustments 40,000 AMT preferences 90,000 Taxable income 110,000 Calculate her AMT for 2009. a. $0. b. $59,549. c. $31,971. d. $23,046. e. None of the above. 2. Kenya, who is single and age 32, provides you with the following information from her financial records for 2009. Regular income tax liability $ 49,100 AMT positive adjustments 30,000 AMT preferences 20,000 Taxable income 185,000 Calculate her AMTI for 2009. 3. Marcus, who is a head of household and age 45, provides you with the following information from his financial records for 2009. Regular income tax liability $ 37,883 AMT adjustments 30,000 AMT preferences 20,000 Taxable income 175,000 Calculate his AMT for 2009. 4. Aaron, who is single, owns a personal residence in the city. He also owns a condo near the ocean. He uses the condo as a vacation home. In March 2009 he borrowed $50,000
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on a home equity loan and used the proceeds to acquire a luxury automobile. During 2009, he paid the following amounts of interest: on his personal residence $12,000 on the condo 6,000 on the home equity loan 5,000 on credit card obligations 4,000 What amount, if any, must Aaron recognize as an AMT adjustment in 2009? 5. Jerome acquires used 7-year personal property for $30,000 to use in his business in February 2009. Jerome does not elect § 179 expensing and elects not to take the additional first-year depreciation, but does take the maximum cost recovery deduction. As a result, Jerome will have a positive AMT adjustment in 2009 of what amount? a. $0. b. $1,074. c. $3,213. d. $4,287. e. None of the above. 6. In 2009, Brian has a $85,000 loss on a passive activity for regular income tax purposes. For AMT purposes, his loss is $75,000. The amount of the AMT adjustment resulting from the passive activity loss is: 7. Which of the following is a positive adjustment for AMT? 8. Which of the following is not an itemized deduction allowed for AMT purposes?
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