Final answer:
State income tax
Real estate tax
Under the Alternative Minimum Tax (AMT), certain itemized deductions such as state and local tax deductions, including real estate and state income taxes, are disallowed.
However, deductions for qualified medical expenses, charitable contributions, mortgage interest on acquisition indebtedness, and home equity loan interest for home improvement are still allowable.
Step-by-step explanation:
For the Alternative Minimum Tax (AMT), certain itemized deductions that are allowed for your regular tax computations are disallowed. The itemized deduction add-back for AMT includes:
On the other hand, itemized deductions such as medical expenses beyond a certain threshold, charitable contributions, and mortgage interest on acquisition indebtedness are generally still allowable under the AMT. Specifically, home equity loan interest on a loan used to improve the home is also deductible for AMT purposes.
Taxable income for both regular tax and AMT computations starts with your adjusted gross income and then subtracts either the standard deduction or itemized deductions, depending on which you're claiming.
Under the Alternative Minimum Tax (AMT), certain itemized deductions such as state and local tax deductions, including real estate and state income taxes, are disallowed.
However, deductions for qualified medical expenses, charitable contributions, mortgage interest on acquisition indebtedness, and home equity loan interest for home improvement are still allowable.