On their joint tax return, Sam and Joann, both age 70, had adjusted gross income (AGI) of $150,000 and claimed the following itemized deductions: Interest of $15,000 on a $100,000 home equity loan to purchase a motor home Real estate tax and state income taxes of $18,000 Unreimbursed medical expenses of $15,000 (prior to AGI limitation) Miscellaneous itemized deductions of $5,000 (prior to AGI limitation). Based on these deductions, what would be the amount of AMT add-back adjustment in computing alternative minimum taxable income?
a) $38,750
b) $23,750
c)$35,000
d) $21,750
Ans: a) $38,750
Business
You might also like to view...
All of these are characteristics of a horizontal organization EXCEPT:
A. that teams are used to manage everything. B. that customer's drive performance. C. that supplier and customer contact is maximized. D. that employees are provided information on a 'need to know basis'.
Business
What is a single-business strategy?
What will be an ideal response?
Business