Celia and Christian, who are married filing jointly, have one dependent and do not itemize deductions.They report taxable income of $492,000 and tax preferences of $53,000 in 2019.What is their AMT base for 2019?
A)$0.
B)$492,000.
C)$457,700.
D)$569,400.

Question

Quizplus · Accepted Answer

The AMT base is calculated by starting with taxable income and adding back tax preferences. 
AMT base = taxable income + tax preferences 
AMT base = $492,000 + $53,000 
AMT base = $545,000 
However, there is an exemption amount for AMT that is subtracted from the AMT base. For 2019, the exemption amount for a married filing jointly couple is $111,700. 
AMT base - exemption = AMTI ($545,000 - $111,700 = $433,300) 
Since their taxable income is above the exemption amount, their AMT base is $457,700 ($492,000 - $111,700 + $53,000 = $457,700).

Celia and Christian, Who Are Married Filing Jointly, Have One