Alternative tax itemized deductions (ATIDs) for individuals do not include a. miscellaneous itemized deductions. b. itemized...

Alternative tax itemized deductions (ATIDs) for individuals do not include a. miscellaneous itemized deductions. b. itemized deductions relating to the payment of any tax. c. medical expenses. d. both a and b. e. all of the above.

Solutions

Expert Solution

Answer : d. both a and b

Reason : As per US code 56(b)(1)(A), Two itemized deductions are totally disallowed for AMT (ATIDs) purpose

1. Miscellaneous itemized deductions (MIDs). For example unreimbursed employee business expenses and tax preparation expenses are not allowed for the AMT.

2. Itemized deductions related to the payment of any tax. For example state, local and foreign income taxes and real and personal property taxes are not allowed as deductions for AMT purposes.

As per US code 67(b), ATIDs generally include the following:

1. Medical expenses but only in excess of 10% of taxpayer's regular tax A.G.I.

2. Interest expense but only for:

A. Qualified housing interest

B. Investment interest expense to the extent of net investment income

3. Charitable contributions

4. Theft, casualty and wagering losses

5. Estate tax deductions resulting from reporting income in respect of a decedent under code 691

6. Impairment related work expenses

7. Bond premium amortization deductions.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Taxpayers normally choose to itemize deductions when itemized deductions exceed the standard deduction. Itemized deductions carry...

Taxpayers normally choose to itemize deductions when itemized deductions exceed the standard deduction. Itemized deductions carry a very strong political/social message. Mortgage interest is deductible, but not consumer interest. The tax code is encouraging debt for home ownership, but not for credit card debt. Another area I get into debate with clients is on lunch expenses. A tradesperson who buys lunch every day is not in travel status, in my opinion. It is a personal expense, and they could bring...

Discuss the limitations on itemized deductions.

When a tax payer can be eligible to receive standard deduction or itemized deductions? Is there...

When a tax payer can be eligible to receive standard deduction or itemized deductions? Is there any certain income level where a taxpayer would not be eligible for either? What is the current status of exemption deductions? What are the tiebreaker rules for claiming qualified child? Can a tax payer/preparer use either tax table or tax rate. Is there a statute of limitation on tax audit? Is there taxes imposed on capital gains? Explain. Explain the rules for determining whether...

How to prepare tax return with these information: The Matthews incurred $16,500 of itemized deductions ($9,600...

How to prepare tax return with these information: The Matthews incurred $16,500 of itemized deductions ($9,600 for property tax and $6,900 for mortgage interest on a loan of $215,000). They are also allowed to claim a child tax credit for each of their children. Angela spent $2,380 to attend a CPA conference in Atlanta. She attends the annual conference to learn more about the profession and also get her CPE credit. Her expenses were not reimbursed by her employer

A) Determine the AGI this year for the taxpayer(s). B) Determine the amount of itemized deductions...

A) Determine the AGI this year for the taxpayer(s). B) Determine the amount of itemized deductions the taxpayer(s) has (have) available this year. C) Using the 2017 standard deduction amounts (assuming no additional amounts for age or blindness) from Appendix D in of your book, state whether the taxpayer(s) itemize or take the standard deduction. I am not asking for you to state the amount of either the standard deduction or the itemized deductions chosen. D) Use the individual tax...

Ruth, who files as single, reported itemized deductions of $12,300 on her 2018 tax return.

Ruth, who files as single, reported itemized deductions of $12,300 on her 2018 tax return. Her itemized deductions included $400 of state taxes paid. In 2019, she received a $275 refund of state taxes paid in 2018. What is the amount that Ruth needs to report on her 2019 tax return? A) $400. B) $275. C) $300. D) $0.

Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700

Myrna and Geoffrey filed a joint tax return in 2018. Their AGI was $85,000, and itemized deductions were $24,700, which included $7,000 in state income tax and no other state or local taxes. In 2019, they received a $1,800 refund of the state income taxes they paid in 2018. The standard deduction for married filing jointly in 2018 was $24,000. Under the tax benefit rule, what amount of the state income tax refund is included in gross income in 2019?

Discuss some tax planning strategies that can maximize the benefit of itemized deductions. You should list...

Discuss some tax planning strategies that can maximize the benefit of itemized deductions. You should list at least one strategy for each of the following categories: Medical Expenses Charitable Contributions Interest on Mortgage Indebtedness

Discuss the various Schedule A Itemized Deductions, the Standard Deductions for each Filing Status, the Additional...

Discuss the various Schedule A Itemized Deductions, the Standard Deductions for each Filing Status, the Additional Standard Deduction, and those taxpayers eligible for the Qualified Business Income Deduction. For Tax Years 2019 and 2020, taxpayers can claim medical and dental expenses that exceed 7.5% of AGI when they itemize on a Schedule A. The citation for the new tax law is the Further Consolidated Appropriations Act, 2020 (Public Law 116-94), which states: SEC. 103. REDUCTION IN MEDICAL EXPENSE DEDUCTION FLOOR....

Discuss the various Schedule A Itemized Deductions, the Standard Deductions for each Filing Status, the Additional...

Subjects