Question

Brooklyn files as a head of household for 2013 and claims a total of three exemptions (3 × $3,900 = $11,700). She claimed the standard deduction of $8,950 for regular tax purposes. Her regular taxable income was $129,000.

What is Brooklyn's AMTI?

Answer 1

Brooklyn's Alternative Minimum Taxable Income (AMTI) would simply be her regular taxable income of $129,000, as the standard deduction and personal exemptions are not subtracted in AMT calculations.

Step-by-step explanation:

The student's question pertains to the calculation of Alternative Minimum Taxable Income (AMTI). To calculate Brooklyn's AMTI, we must first start with her regular taxable income and then add back certain tax preference items and adjustments as required by the AMT rules. Assuming no other adjustments or preferences, Brooklyn's AMTI for 2013 would simply be her regular taxable income as AMT does not allow the standard deduction or personal exemptions to be subtracted.

In Brooklyn's case, her regular taxable income is $129,000. Since the standard deduction of $8,950 and personal exemptions totaling $11,700 would not be subtracted for AMT purposes, her AMTI would be:

AMTI = Regular Taxable Income (since there are no other adjustments mentioned).

Therefore, Brooklyn's AMTI would be $129,000.