In the current tax year David, a 32-year-old single taxpayer, reported itemized deductions of $24,500, composed of the following amounts.
$6,000 of medical expenses (in excess of 10% of AGI)
$4,500 of property taxes on his home
$2,500 of investment expenses (not limited by investment income)
$3,000 of charitable contributions
$8,500 of home mortgage interest
Which of David's itemized deductions could create an AMT preference?
A) All of the itemized deductions potentially create an AMT preference.
B) The deduction for medical expenses and property taxes potentially create an AMT preference.
C) The deduction for investment expenses and property taxes potentially create an AMT preference.
D) None of the itemized deductions potentially creates an AMT preference.
Correct Answer:
Verified
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