In 2015, Don Mills, a single taxpayer had $70,000 in taxable income before personal exemptions. Mills had no tax preferences. His itemized deductions were as follows:
- State and local income taxes - $5,000
- Home mortgage interest on loan to acquire residence: $6,000
- Miscellaneous deduction that exceed 2% of adjusted gross income: $2,000
What amount did Mills report as alternative minimum taxable income before the AMT exemption?
a. $72,000
b. $75,000
c. $77,000
d. $83,000
Answer: C
CPA Exam
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