Samuel, a single individual, has adjusted gross income of $150,000 and the following itemized deductions before applicable floor limitations for 2019: $\begin{array}{llcc}
\text { Medical expenses} &\$17,000 \
\text {Qualified residence acquisition interest } &20,000\
\text {Taxes } &9,000\
\text { Charitable contributions } &7,000\
\text {Miscellaneous itemized deductions } &5,000\
\end{array}$
What are Samuel's itemized deductions for alternative minimum tax purposes?

Question

Samuel, a single individual, has adjusted gross income of $150,000 and the following itemized deductions before applicable floor limitations for 2019: $\begin{array}{llcc}
  \text {  Medical expenses} &\$17,000  \
 \text {Qualified residence acquisition interest  } &20,000\
 \text {Taxes  } &9,000\
 \text { Charitable contributions } &7,000\
 \text {Miscellaneous itemized deductions  } &5,000\
\end{array}$
 What are Samuel's itemized deductions for alternative minimum tax purposes?

Quizplus · Accepted Answer

For AMT purposes, medical expenses are deductible only to the extent they exceed 10% of AGI, taxes are not deductible, and miscellaneous deductions are not allowed. Therefore, Samuel's deductions are $2,000 (medical expenses over 10% of AGI) + $20,000 (interest) + $7,000 (charitable contributions) = $29,000.

Samuel, a Single Individual, Has Adjusted Gross Income of $150,000