After computing all tax preferences and AMT adjustments,Adam and his wife Cindy have AMTI of $290,000.If Adam and Cindy file a joint tax return,what exemption amount can they claim for AMT for 2017?
A)$0.
B)$52,225.
C)$53,900.
D)$84,500.

Question

Quizplus · Accepted Answer

For the tax year 2017, the AMT exemption amount for a married couple filing jointly was $84,500. However, this exemption begins to phase out for taxpayers with AMTI over $160,900. Adam and Cindy's AMTI of $290,000 exceeds this threshold, so their exemption amount would be reduced. The phase-out rate is 25 cents for each dollar of AMTI over $160,900. Therefore, their exemption amount is reduced by [($290,000 - $160,900) * 0.25] = $32,275. Subtracting this from the full exemption amount of $84,500 gives $52,225, which is the correct exemption amount they can claim for AMT for 2017.

After Computing All Tax Preferences and AMT Adjustments,Adam and His