Nathan is married with two children and has AGI of $405,000. He also has the following AMT adjustments and preferences:
a. Itemized deductions:
Itemized Deduction Regular Tax AMT Deduction AMT Adjustment
Medical after floor $5,375
Mortgage interest 14,900
Charitable contributions 18,000
Miscellaneous deductions after floor 540
b. Depreciation of a rental property purchased in August 2007 for $210,000.
c. Depreciation on personal property:
Asset Date Purchased Cost MACRS Life/AMTMACRS Depreciation AMT DepreciationAdjustment
Computer 102/12/13 $2,900
Furniture 102/12/13 12,000
d. Incentive stock option: Nathan exercises options to purchase 1,000 shares at $19 per share when the market value is $26.
how do I Prepare Form 6251 for the calculation of AMT. The regular tax is $84,234.