Question

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.)

	Description Amount (1) AMT base (2) Dividends taxed at preferential rate (3) Tax rate applicable to dividends 15 % (4) Tax on dividends (5) AMT base taxed at regular AMT rates (6) Tax on AMT base taxed at 26% rate (7) Tax on AMT base taxed at 28% rate Tentative minimum tax

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.

     
      

Answer 1

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)