Celia and Amos,who are married filing jointly,have one dependent and do not itemize deductions.They have taxable income of $82,000 and tax preferences of $53,000 in 2010.What is their AMT base for 2010?
A)$0.
B)$86,400.
C)$88,238.
D)$157,350.
E)None of the above.

Question

Quizplus · Accepted Answer

The AMT base is calculated by subtracting the AMT exemptions from the AMT adjusted gross income. In 2010, the AMT exemption for married filing jointly taxpayers was $72,450. Therefore, their AMT adjusted gross income would be $82,000 + $53,000 = $135,000. Their AMT base would be $135,000 - $72,450 = $62,550. However, the AMT base cannot be less than the taxpayer's regular tax liability, so their AMT base would be $82,000. Thus, the correct answer is (C) $88,238.

Celia and Amos,who Are Married Filing Jointly,have One Dependent and Do