A is corrent. The requirement is to determine Robert’s allowable itemized deductions for alternative minimum tax purposes. For purposes of computing an individual’s AMT, no deduction is allowed for personal, state, and local taxes, and home mortgage interest if the loan proceeds were not used to buy, build, or substantially improve the home. Additionally, unreimbursed medical expenses are allowed only to the extent in excess of 10% of adjusted gross income. Here, Robert’s allowable itemized deductions for AMT purposes consist of medical expenses of $12,000 - (10% x $100,000) = $2,000, qualified mortgage interest of $10,000, and charitable contributions of $5,000, resulting in a total of $17,000.
B is incorrect because Robert’s itemized deductions that are allowable for AMT purposes total $17,000.
C is incorrect because Robert’s itemized deductions that are allowable for AMT purposes total $17,000.
D is incorrect because Robert’s itemized deductions that are allowable for AMT purposes total $17,000.
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