Jonathan is married, files a joint return, and has one child. During 2011, Jonathan has $85,000 of taxable income. He has $20,000 of positive AMT adjustments and $28,000 of tax preferences. Since Jonathan rents his home (pays no mortgage interest) and lives in Tennessee (has no state income tax), he does not itemize his deductions but takes the standard deduction. Calculate Jonathan's AMTI (before exclusion amount).
A. $133,000.
B. $144,100.
C. $144,600.
D. $155,700.
is it C
No, it's not C. It's actually B, $144,100. Jonathan's AMTI is calculated by adding his taxable income ($85,000) to his positive AMT adjustments ($20,000) and tax preferences ($28,000). So, $85,000 + $20,000 + $28,000 = $133,000. But hey, thanks for playing!
To calculate Jonathan's Alternative Minimum Taxable Income (AMTI), we need to make certain adjustments to his taxable income.
First, add the positive AMT adjustments to his taxable income:
$85,000 + $20,000 = $105,000
Next, add the tax preferences to the adjusted taxable income:
$105,000 + $28,000 = $133,000
Therefore, Jonathan's AMTI (before exclusion amount) is $133,000.
So, the correct answer is A. $133,000
To calculate Jonathan's AMTI (Alternative Minimum Taxable Income) before the exclusion amount, we need to sum up his taxable income, positive AMT adjustments, and tax preferences.
1. Taxable income: Jonathan has $85,000 of taxable income.
2. Positive AMT adjustments: Jonathan has $20,000 of positive AMT adjustments.
3. Tax preferences: Jonathan has $28,000 of tax preferences.
To calculate Jonathan's AMTI before the exclusion amount, we need to add these three amounts:
$85,000 (taxable income) + $20,000 (positive AMT adjustments) + $28,000 (tax preferences) = $133,000.
So, the correct answer is A. $133,000.