Question
In: Accounting
In 2017, Juanita is married and files a joint tax return with her husband. What is...
In 2017, Juanita is married and files a joint tax return with her husband. What is her tentative minimum tax in each of the following alternative circumstances? (Input all values as positive. Leave no answer blank. Enter zero if applicable.)
|
a. Her AMT base is $150,000, all ordinary income.
b. Her AMT base is $255,000, all ordinary income.
c. Her AMT base is $150,000, which includes $33,500 of qualified dividends.
d. Her AMT base is $255,000, which includes $33,500 of qualified dividends.
Solutions
Expert Solution
| Answer a. | |||
| Description | Amount | ||
| (1) | AMT Base | 150,000.00 | |
| (2) | Dividends taxed at preferential rate | - | |
| (3) | Tax rate applicable to dividends | 15% | |
| (4) | Tax on dividends | - | (2) X (3) |
| (5) | AMT base taxed at Regular AMT rates | 150,000.00 | (1) - (2) |
| (6) | Tax on AMT base taxed at 26% rate | 39,000.00 | $150,000 X 26% |
| (7) | Tax on AMT base (in excess of $187,800) taxed at 28% rate | - | |
| Tentative Minimum Tax | 39,000.00 | (4) + (6) + (7) | |
| Answer b. | |||
| Description | Amount | ||
| (1) | AMT Base | 255,000.00 | |
| (2) | Dividends taxed at preferential rate | - | |
| (3) | Tax rate applicable to dividends | 15% | |
| (4) | Tax on dividends | - | (2) X (3) |
| (5) | AMT base taxed at Regular AMT rates | 255,000.00 | (1) - (2) |
| (6) | Tax on AMT base taxed at 26% rate | 48,828.00 | $187,800 X 26% |
| (7) | Tax on AMT base (in excess of $187,800) taxed at 28% rate | 18,816.00 | ($255,000 - $187,800) X 28% |
| Tentative Minimum Tax | 67,644.00 | (4) + (6) + (7) | |
| Answer c. | |||
| Description | Amount | ||
| (1) | AMT Base | 150,000.00 | |
| (2) | Dividends taxed at preferential rate | 33,500.00 | |
| (3) | Tax rate applicable to dividends | 15% | |
| (4) | Tax on dividends | 5,025.00 | (2) X (3) |
| (5) | AMT base taxed at Regular AMT rates | 116,500.00 | (1) - (2) |
| (6) | Tax on AMT base taxed at 26% rate | 30,290.00 | $116,500 X 26% |
| (7) | Tax on AMT base (in excess of $187,800) taxed at 28% rate | - | |
| Tentative Minimum Tax | 35,315.00 | (4) + (6) + (7) | |
| Answer d. | |||
| Description | Amount | ||
| (1) | AMT Base | 255,000.00 | |
| (2) | Dividends taxed at preferential rate | 33,500.00 | |
| (3) | Tax rate applicable to dividends | 15% | |
| (4) | Tax on dividends | 5,025.00 | (2) X (3) |
| (5) | AMT base taxed at Regular AMT rates | 221,500.00 | (1) - (2) |
| (6) | Tax on AMT base taxed at 26% rate | 48,828.00 | $187,800 X 26% |
| (7) | Tax on AMT base (in excess of $187,800) taxed at 28% rate | 9,436.00 | ($221,500 - $187,800) X 28% |
| Tentative Minimum Tax | 63,289.00 | (4) + (6) + (7) | |
ekkarill92 answered 10 months agoRelated Solutions
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married and files a joint tax return with her husband. What is her
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no answer blank. Enter zero if applicable.)
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