Reva and Josh Lewis had alternative minimum taxable income of $350,000 in 2014 and file a joint return.For purposes of computing the alternative minimum tax,their exemption is
A)$33,725.
B)$52,800.
C)$48,375.
D)$82,100.

Question

Quizplus · Accepted Answer

The exemption for married filing jointly for AMT purposes is $82,100. The exemption is phased out for taxpayers with AMTI above certain levels. For 2014, the phase-out begins at $150,000 for married filing jointly. The exemption is reduced by 25 cents for each dollar of AMTI above the phase-out threshold. In this case, the taxpayers' AMTI is $350,000, which is $200,000 above the phase-out threshold. Therefore, their exemption is reduced by $50,000 (25 cents x $200,000). This leaves them with an exemption of $32,100 ($82,100 - $50,000).

Reva and Josh Lewis Had Alternative Minimum Taxable Income of $350,000