Question

In 2019, Nadia has $100,000 of regular taxable income. She itemizes her deductions as follows: real property taxes of $1,500, state income taxes of $2,000, and mortgage interest expense of $10,000 (acquisition indebtedness of $200,000). In addition, she receives tax-exempt interest of $1,000 from a municipal bond (issued in 2006) that was used to fund a new business building for a (formerly) out-of-state employer. Finally, she received a state tax refund of $300 from the prior year.A) What is Nadia AMTI this year if she deducted $15,000 of itemized deductions last year and did not owe any AMT last yer? Coplete Form 6251( through line 28) for nadia.

B) What ia Nadia's AMTI this year if she deducted the standard deduction last year and did not owe ant AMT last year? Complete Form 6251 (through line 28) for Nadia

Answer 1

a) Nadia's AMTI this year if she deducted $15,000 of itemized deductions last year and did not owe any AMT last year is $107,850.

b) Nadia's AMTI this year if she deducted the standard deduction last year and did not owe ant AMT last year is $108,150

Step-by-step explanation:

a)

description amount explanation

regular taxable income $100,000

personal exemption $3650

interest (private bond) $1000 not issued in 2009 or 2010

real estate taxes $1500 not deductible for AMTI

state income taxes $2000 not deductible for AMTI

state tax refund ($300)

AMTI $107850

Therefore, Nadia's AMTI this year if she deducted $15,000 of itemized deductions last year and did not owe any AMT last year is $107,850.

b)

description amount explanation

regular taxable income $100,000

personal exemption $3650

interest (private bond) $1000 not issued in 2009 or 2010

real estate taxes $1500 not deductible for AMTI

state income taxes $2000 not deductible for AMTI

AMTI $108150

Therefore, Nadia's AMTI this year if she deducted the standard deduction last year and did not owe ant AMT last year is $108,150.