Beulah,who is single,provides you with the following information from her financial records for 2017.Compute Beulah's AMTI.

A)$0
B)$174,050
C)$228,000
D)$232,050
E)None of the above

Question

Beulah,who is single,provides you with the following information from her financial records for 2017.Compute Beulah's AMTI.
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A)$0 
B)$174,050 
C)$228,000 
D)$232,050 
E)None of the above

Quizplus · Accepted Answer

To calculate AMTI, we start with AGI and make appropriate adjustments. As Beulah is single and her taxable income is greater than $191,500, we need to use the phase-out rules for itemized deductions and personal exemptions. Thus, first we add back the deductions that were reduced due to her AGI, which is $10,500 ($1,500 for personal exemption and $9,000 for itemized deductions). Next, we add her total itemized deductions and her personal exemptions back to her AGI, which is $168,000 + $4,050 = $172,050. Since Beulah did not have any other adjustments, her AMTI would be $172,050 + $60,000 (standard exemption for AMT) = $232,050. Hence, the correct answer is option D.

Beulah,who Is Single,provides You with the Following Information from Her