Cliff is married and files a joint return.His return shows AGI of $1,268,000 and regular taxable income of $1,224,000.He has $30,000 of preference items and $21,000 of net positive adjustments (including adjustments for itemized deductions).The $111,700 exemption begins to phase out at $1,020,600.What is his AMTI exemption amount?

Question

Quizplus · Accepted Answer

The exemption amount is reduced by 25% of the amount by which AMTI exceeds the phase-out threshold. Here, AMTI is $1,268,000 + $30,000 + $21,000 = $1,319,000. The excess over the threshold is $1,319,000 - $1,020,600 = $298,400. The reduction is 25% of $298,400, which is $74,600. The exemption is $111,700 - $74,600 = $37,100. However, the minimum exemption is $48,100, so the exemption amount is $48,100.

Cliff Is Married and Files a Joint Return