Bill, who is single with no dependents, had AGI of $100,000. His AGI included net investment income of $15,000 and gambling income of $1,100. Bill incurred the following itemized deductions for income tax purposes.
|
Medical expenses (before 7.5% of AGI floor) |
$11,000 |
|
State income taxes |
3,200 |
|
Personal property tax |
2,000 |
|
Real estate tax |
$ 8,400 |
|
Interest on personal residence |
12,200 |
|
Interest on home (never rented to others) |
3,800 |
|
Interest on home equity loan (proceeds were used to buy a |
|
|
new automobile) |
2,700 |
|
Investment interest expense |
3,300 |
|
Charitable contribution |
5,000 |
|
Casualty loss (after $100 floor, before 10% of AGI floor) |
13,000 |
|
Unreimbursed employee expenses (before 2% of AGI floor) |
2,400 |
|
Gambling losses |
900 |
What is Bill’s AMT adjustment for itemized deductions? Is it positive or negative?