Credit for the elderly 225 0 225 frank and emmas

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Credit for the elderly $225 $02250Frank and Emma’s taxable income is $0 ($18,000 − $11,400 − $1,100 − $1,100 − $7,300). This gives a taxliability of $0, which means that the credit is not available.P9-64p9-649475Comprehensive Problem—AMT Computation64Adjusted gross income $100,000100000Less: Itemized deductions 20,00020000Less: Personal exemption 3,6503650Taxable income $76,35076350Tax from tax rate schedule $15,26915269Less: General business credit 00see noteRegular tax $15,26915269Alternative minimum tax 669669Total tax $15,93815938Taxable income $76,35076350Personal exemption 3,6503650Non-AMT itemized deductions 8,0008000Tax preference items 20,00020000Alternative minimum taxable income $108,000108000Less: Exemption 46,70046700married70950 m/sep35475 sing46700Net alternative minimum taxable income $61,3006130026% tax rate × 26 %x26%Tentative alternative minimum tax $15,93815938Less: Regular tax 15,26915269Alternative minimum tax $669669The amount of credits may not exceed the excess of the taxpayer’s regular tax liability for the year($15,269) over the tentative minimum tax for the year ($15,938). Thus, none of the general business creditis taken to reduce the regular income tax down to the amount of the tentative alternative minimum tax. Thegeneral business credit of $17,000 is carried over under regular rules.SEE BELOW CHAPTER 10 FOR REMAINING CHAPTER 9 PROBLEMSPROBLEMS—CHAPTER 10Topical List of ProblemsI/C22. Basis and Gain or Loss: Depreciable Property (¶10,001—¶10,035)1000110035Ch23. Basis and Gain or Loss: Sale of Depreciable Property (¶10,001—¶10,035100011003555. Multiple Choice—Recognized Gain (¶10,001—¶10,035)1000110035Ch24. Adjusted Basis: Sale of Depreciable Property (¶10,025)10025I/C25. Gain or Loss: Sale of Taxable Bonds (¶10,025)10025I/C27. Gain or Loss: Sale of Stock and Personal-Use Assets (¶10,035)10035Ch21. Basis (¶10,101)10101I/C28. Allocation of Basis: Depreciable and Nondepreciable Property (¶10,115)10115I/C29. Basis and Gain or Loss: Stock Dividends (¶10,125)10125I/C30. Basis and Gain or Loss: Sale of Stock (¶10,125)10125I/C31. Nontaxable Preferred Stock Dividend (¶10,125)10125I/C32. Taxable Stock Dividend (¶10,125)10125I/C33. Basis and Gain or Loss: Stock Rights (¶10,125)1012534. Basis and Gain or Loss: Stock Rights (¶10,125)10125I/C35. Taxable Stock Rights (¶10,125)10125HW56. Multiple Choice—Basis: Stock and Stock Dividends (¶10,125)10125HW26. Basis: Sale of Stock (¶10,135)1013536. Basis and Gain or Loss: Gift Property (¶10,145)1014537. Basis and Gain or Loss: Gift Property (¶10,145)10145HW38. Basis and Gain or Loss: Gift Property (¶10,145)1014539. Basis and Holding Period (¶10,145)1014540. Basis and Gain or Loss: Gift Property (¶10,145)1014541. Basis: Gift Property (¶10,145)1014557. Multiple Choice—Basis: Gift Property (¶10,145)1014542. Basis: Inherited Property (¶10,175)1017543. Basis and Gain or Loss: Inherited Property (¶10,175)1017544. Basis: Inherited Property (¶10,175)1017545. Basis: Inherited Property (¶10,175)1017546. Basis: Inherited Property (¶10,175)1017554. Basis and Gain or Loss: Taxable Income Computation 1017510201102151022558. Multiple Choice—Basis: Inherited Property (¶10,175)10175HW47. Gain or Loss: Sale of Stock (¶10,201)1020148. Gain or Loss: Wash Sales (¶10,201)1020149. Gain or Loss: Sale to Related Party (¶10,225)1022550. Gain or Loss: Sales to Related Party (¶10,225)1022551. Gain or Loss: Sales to Related Party (¶10,225)1022552. Gain or Loss: Sales to Related Party (¶10,225)1022553. Installment Reporting (¶10,245)10245P10-22p10-22100011003522a. Basis: $630,000 plus $60,000 cost of windows plus $90,000 cost of elevator minus $400,000depreciation = $380,000

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