ZuoTi.Pro
Question

Sylvester files as a single taxpayer during 2017 and claims one personal exemption. He itemizes deductions...

Sylvester files as a single taxpayer during 2017 and claims one personal exemption. He itemizes deductions for regular tax purposes. He paid charitable contributions of $15,700, real estate taxes of $900, state income taxes of $8,700, and interest on a home-equity loan of $2,700. Sylvester’s regular taxable income is $142,000.

a. What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car?

b. What is Sylvester's AMTI if he used the home-equity loan proceeds to build a new garage next to his home?

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a)

Regular Taxable Income $142,000

Personal exemption applicable $4,050

Real Estate Taxes $900 (No Exemption)

State income tax $8,700 (No Exemption)

Interest on home equity loan $2,700 (No Exemption)

----------------------------------------------------------------------------------------

AMTI $158,350

Charitable contributions are allowed for deduction.

For regular tax purposes, Interest paid on homeloan is allowed for deduction however the proceeds are used. But for AMT purposes it is deductible only if loan proceeds are used for acquiring /substantially improving the home.

b)

Regular Taxable Income $142,000

Personal exemption applicable $4,050

Real Estate Taxes $900

State Income tax $8,700

------------------------------------------------------------------------

AMTI $155,650

Deduction for charitable contributions is applicable.

0 0
Add a comment
Know the answer?
Add Answer to:
Sylvester files as a single taxpayer during 2017 and claims one personal exemption. He itemizes deductions...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Required information [The following information applies to the questions displayed below. In 2018, Sheryl is clalmed...

    Required information [The following information applies to the questions displayed below. In 2018, Sheryl is clalmed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. What Is Sheryl's tax llability for the year in each of the following alternative circumstances? Use Tax Rate Schedule. DiMdends and Capital Galns Tax Rates, Estates and Trusts for reference. (Leave no answer blank. Enter zero If applica ble.) b. She recelved $7,100 of Interest Income...

  • Pedro, who is a single taxpayer, had AGI of $373,800 for 2017. He incurred the following...

    Pedro, who is a single taxpayer, had AGI of $373,800 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $14,420 State and local income taxes $11,214 Real estate taxes $2,243 Home mortgage interest $18,690 Charitable contributions $4,486 Deductible investment interest expense $1,682 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations. $_____________________

  • Pedro, who is a single taxpayer, had AGI of $337,400 for 2017. He incurred the following...

    Pedro, who is a single taxpayer, had AGI of $337,400 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $12,620 State and local income taxes $10,122 Real estate taxes $2,024 Home mortgage interest $16,870 Charitable contributions $4,049 Deductible investment interest expense $1,518 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations.

  • Pedro, who is a single taxpayer, had AGI of $343,000 for 2017. He incurred the following...

    Pedro, who is a single taxpayer, had AGI of $343,000 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $20,900 State and local income taxes $10,290 Real estate taxes $2,058 Home mortgage interest $17,150 Charitable contributions $4,116 Deductible investment interest expense $1,544 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations. $

  • Pedro, who is a single taxpayer, had AGI of $352,800 for 2017. He incurred the following...

    Pedro, who is a single taxpayer, had AGI of $352,800 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $20,180 State and local income taxes $10,584 Real estate taxes $2,117 Home mortgage interest $17,640 Charitable contributions $4,234 Deductible investment interest expense $1,588 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations.

  • Pedro, who is a single taxpayer, had AGI of $344,400 for 2017. He incurred the following...

    Pedro, who is a single taxpayer, had AGI of $344,400 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $20,660 State and local income taxes $10,332 Real estate taxes $2,066 Home mortgage interest $17,220 Charitable contributions $4,133 Deductible investment interest expense $1,550 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations. $

  • Problem 10-28 (LO. 2) Linda, who files as a single taxpayer, had AGI of $280,000 for...

    Problem 10-28 (LO. 2) Linda, who files as a single taxpayer, had AGI of $280,000 for 2019. She incurred the following expenses and losses during the year: Medical expenses (before the 10%-of-AGI limitation) $33,000 State and local income taxes 4,800 State sales tax 1,300 Real estate taxes 6,000 Home mortgage interest 5,000 Automobile loan interest 750 Credit card interest 1,000 Charitable contributions 7,000 Casualty loss (before 10% limitation but after $100 floor; not in a Federally declared disaster area) 34,000...

  • Bob, an unmarried taxpayer filing single, has no dependents and reports the following items on his...

    Bob, an unmarried taxpayer filing single, has no dependents and reports the following items on his 2019 federal income tax return: BE: (Click the icon to view the items reported in 2019.) 5 (Click the icon to view the 2019 AMT exemption amounts.) Read the requirements. Requirement a. What is the amount of Bob's AMT adjustments related to itemized deductions? Complete the table below to determine Bob's total AMT adjustments related to itemized deductions. (If a box is not used...

  • xercise 10-22 (Algorithmic) (LO. 8) Pedro, who is a single taxpayer, had AGI of $350,000 for 2017. He incurred the follo...

    xercise 10-22 (Algorithmic) (LO. 8) Pedro, who is a single taxpayer, had AGI of $350,000 for 2017. He incurred the following expenses during the year: Medical expenses before 10%-of-AGI limitation $21,500 State and local income taxes $10,500 Real estate taxes $2,100 Home mortgage interest $17,500 Charitable contributions $4,200 Deductible investment interest expense $1,575 Compute the amount of Pedro's itemized deductions after any applicable reductions and/or limitations. Round your computations to the nearest dollar and use rounded amounts in subsequent calculations.

  • 8. Ed is single with no dependents. He has receipts for the expenses listed below that...

    8. Ed is single with no dependents. He has receipts for the expenses listed below that he paid in 2019. His AGI is $60,000. What are his total itemized deductions for 2019? • $8,000 in unreimbursed medical expenses • 55,400 in state and local income taxes • $6,000 in real estate taxes • $400 in ad valorem personal property taxes • $4,300 in mortgage interest • $1,800 in interest from a home equity loan used to pay credit card debt...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT