Drake and Davina are married and file a joint return for 2017 with taxable income of $100,000 and tax preferences and adjustments of $51,000 for AMT purposes.Their regular tax liability is $16,478.What is the amount of their total tax liability?
A)$17,290
B)$39,260
C)$33,768
D)$16,478

Question

Quizplus · Accepted Answer

A)The amount of AMTI is $151,000.Their AMT base $151,000 - $84,500 or $66,500.Their TMT is $66,500 × .26 = $17,290.Their tax liability is the greater of the TMT or regular tax,in this case,$17,290.

Drake and Davina Are Married and File a Joint Return