James Gellert, a self-employed carpenter (social security number 353-21-3251), is married and itemized deductions when filing a joint income tax return for 2012 with his wife Nancy.
Compute the Gellerts' alternative minimum tax for 2012 by completing Form 6251 Alternative Minimum Tax—Individuals. Using the spreadsheet below, enter the appropriate amounts in the lines corresponding to the lines in the tax form. If no entry is required, enter NA. | Adjusted gross income (Form 1040 line 38) | $135,000 | | AMT exemption for married taxpayers filing jointly | 78,750 | | Taxable income before personal exemptions (Form 1040 line 41) | 87,500 | | Personal exemptions (2 x $3,800) | 7,600 | | Regular tax liability (Form 1040 line 44) | 12,041 | | Interest income from State of Ohio general obligation bonds | 4,000 | | Interest income from specified private activity bonds purchased in 2008 | 18,000 | Depreciation on 5-year MACRS property using the 200% declining balance method
(depreciation would have been $18,000 using the 150% declining balance method,
and would have been $12,000 if the straight-line method had been used) | 24,000 | | Itemized deductions: | | | Medical expenses (after 7.5% of AGI floor) | 5,000 | | State income taxes | 6,000 | | Real estate taxes | 12,000 | | Home mortgage interest on loan to acquire principal residence | 11,000 | | Home equity mortgage interest (loan proceeds were used to purchase an auto) | 3,500 | | Charitable contributions | 9,000 | | Miscellaneous deductions (after 2% of AGI floor) | 1,000 | 34
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