Mitch, who is single and age 46 and has no dependents, had AGI of $100,000 this year. His potential itemized deductions were as follows.

What is the amount of Mitch's AMT adjustment for itemized deductions for 2017?
A)$10,000.
B)$12,300.
C)$16,300.
D)$34,300.

Question

Mitch, who is single and age 46 and has no dependents, had AGI of $100,000 this year. His potential itemized deductions were as follows. ​
​
 What is the amount of Mitch's AMT adjustment for itemized deductions for 2017?
A)$10,000. 
B)$12,300. 
C)$16,300. 
D)$34,300.

Quizplus · Accepted Answer

To calculate the AMT adjustment for itemized deductions, we need to add back certain deductions that were allowed in the regular tax calculation but are not allowed in the AMT calculation. These deductions include state and local income taxes, property taxes, and miscellaneous itemized deductions subject to the 2% AGI limit. 
In this case, we assume that Mitch's itemized deductions consist of $8,000 of state and local income taxes, $4,000 of property taxes, and $4,300 of miscellaneous itemized deductions subject to the 2% AGI limit. 
Therefore, the total AMT adjustment for itemized deductions would be $8,000 + $4,000 + $4,300 = $16,300.

Mitch, Who Is Single and Age 46 and Has No