Wolfgang’s AGI is $125,000. He reports the following itemized deductions for 2012.
|
Medical expenses [$15,000 − (7.5% × $125,000)] |
$ 5,625 |
|
State income taxes |
4,200 |
|
Charitable contributions |
4,000 |
|
Home mortgage interest on his personal residence |
8,000 |
|
Casualty loss (after $100 and 10% reductions) |
1,800 |
|
Miscellaneous itemized deductions |
|
|
[$3,500 − (2% × $125,000)] |
1,000 |
|
$24,625 |
a. Calculate Wolfgang’s itemized deductions for AMT purposes.
b. What is the amount of the AMT adjustment?