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Compute their tentative minimum tax

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Reference no: EM131511995

Fred and Wilma are married and each aged 67 years, with no dependents. Their income and expenses are listed below.

           Salaries                                                                             $150,000

           Interest Income – State Bank                                                 1,500

           Interest Income – private activity bonds (issued 2013)        20,000

           Gambling income                                                                   3,000

           Dividend income (not qualified dividends)                          2,000

           Medical expenses (before AGI floor)                                  13,000

           Gambling losses                                                                     6.000

           State income taxes                                                                 3,500

           Mortgage interest on home                                                    4,600

           Investment interest expense                                                   2,100

           Real estate taxes                                                                    3,200                

Compute their tentative minimum tax for 2016.

Is State Income Tax included in itemized deduction?       

Reference no: EM131511995

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