Question

Otto and Monica are married taxpayers who file a joint tax return. For the current tax year, they have AGI of $80,300. They have excess depreciation on real estate of $67,500, which must be added back to AGI to arrive at AMTI. The amount of their mortgage interest expense for the year was $25,000, and they made charitable contributions of $7,500. They have no other itemized deductions. If Otto and Monica's taxable income for the current year is $39,700, determine the amount of their AMTI.

Answer 1

$115,300

Step-by-step explanation:

Calculation to determine the amount of their AMTI.

AGI $80,300

Add Depreciation on real estate $67,500

Less Mortgage interest expense ($25,000)

Less Charitable contributions ($7,500)

AMTI $115,300

(80,300 + 67,500 - 25,000 - 7,500)

Therefore the amount of their AMTI will be $115,300