Calculate amount of Dante current year minimum tax

Reference no: EM132839891

Question - AMT and Tax Liability

Dante Santana is an unmarried 29-year-old taxpayer with no dependents. Below is his current year taxable income and deductions, along with the single regular tax rate schedule and the alternative minimum tax (AMT) rate schedule. Dante itemized deductions in previous years. The current year standard deduction for single taxpayers is $12,200. Last year, Dante's itemized deductions totaled $15,000 and the standard deduction last year was $12,000.

Using the taxable income and deductions summary and tax rate schedules provided in the below, calculate the amount of Dante's current year alternative minimum tax (AMT) liability and the regular income tax liability.

DANTE SANTANA'S CURRENT YEAR TAXABLE INCOME AND DEDUCTIONS SUMMARY

Income

Gross revenue-rental property $223,000

Royalty income-oil wells $55,000

Interest income-corporate bonds $5,500

Interest income-local private activity bonds (issued in 2012) $8,000

State income tax refund from prior year $1,500

Deductions

Rental property-MACRS depreciation* $47,000

Rental property-management fees $36,000

Property insurance-home $4,200

Property insurance-rental property $29,000

Real estate taxes-home $11,000

Real estate taxes-rental property $45,000

Mortgage interest-home $20,000

Mortgage interest-rental property $23,000

Charitable contributions $16,000

State and local income taxes $19,000

Percentage depletion-oil wells (excess over adjusted cost basis) $21,000

* Depreciation for alternative minimum tax purposes: $33,000

Reference no: EM132839891

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