Question

Farr, an unmarried taxpayer, had $70,000 of adjusted gross income and the following deductions for regular income tax purposes:

Home mortgage interest on a loan to acquire a principal residence $ 11,000
Miscellaneous itemized deductions above the threshold limitation 2,000
What are Farr's total allowable itemized deductions for computing alternative minimum taxable income?
a. $13,000
b. $2,000
c. $11,000
d. $0

Answer 1

C) USD 11,000

Step-by-step explanation:

Both mortgage interest and miscellaneous itemized subtraction are deductible for casual tax payment.

Moreover, miscellaneous itemized deduction are "adjustments" so, are not able as deductions for alternative minimum tax purpose.