Farr, who is single, has no dependents and does not itemize. She shows the following items relative to her 2012 tax return.
Bargain element from the exercise of an ISO (no restrictions |
|
apply to the stock) |
$ 45,000 |
MACRS depreciation on shopping mall building acquired in |
|
1990 (ADS depreciation would have yielded $26,000) |
49,000 |
Percentage depletion in excess of property’s adjusted basis |
50,000 |
Taxable income for regular income tax purposes |
121,000 |
a. Determine Farr’s AMT adjustments and preferences.
b. Calculate the AMT (if any).