Question

Wolfgang, who is age 33, records AGI of $125,000. He incurs the following itemized deductions for 2018: Medical expenses [$15,000 – (7.5% x $125,000)] $5,625 State income taxes 4,200 Charitable contributions 5,000 Home mortgage interest on his personal residence 6,000 $20,825 a. Calculate Wolfgang's itemized deductions for AMT purposes. If an amount is zero, enter "0". Medical expenses $ State income taxes Charitable contributions Home mortgage interest on his personal residence Total $ b. What is the total amount of his AMT adjustments from these items? There is a adjustment of $ .

Answer 1

There is a positive adjustment of $5,200

Step-by-step explanation:

Medical expenses

$2,500

State income taxes

$0

Charitable contributions

$5,000

Qualified housing interest

$6,000

Casualty loss

$1,800

Miscellaneous itemized deductions

$0

Total

$15,300

There is a positive adjustment of $5,200