Celia and Amos, who are married filing jointly, have one dependent and do not itemize deductions. They have taxable income of $82,000 and tax preferences of $53,000 in 2012. What is their AMT base for 2012?
A)$0.
B)$85,925.
C)$94,450.
D)$158,300.
E)None of the above.

Question

Quizplus · Accepted Answer

The AMT base is the taxable income plus tax preferences. In this case, the taxable income is $82,000 and the tax preferences are $53,000. Therefore, the AMT base is $82,000 + $53,000 = $135,000. However, the AMT base is reduced by the AMT exemption amount, which is $51,900 for married filing jointly in 2012. Therefore, the AMT base for Celia and Amos is $135,000 - $51,900 = $83,100.

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