[Anonymous]

Becker Question –

Current year AGI $100,000 and potential itemized deductions as follows:

Medical Expense (Before % limitation) 12,000

State income tax 4,000

Real estate tax 3,500

Qualified housing and residence mortgage interest 10,000

Home Equity Mortgage interest (used to consolidate personal debt) 4,500

Charitable contribution 5,000

What’s the itemized deduction for AMT?

Answer is $17,000 (2,000 excess of med exp + 10,000 + 5,000). I don’t understand why the 10,000 and 5,000 was added because in the book/notes it mentions that home mortgage and charitable contributions are not to be added back to AMT? Can anyone clarify this for me? Thanks!

[Resacups]

The question is asking you what items are eligible for deduction for AMT purposes. The home mortgage interest is eligible as are the charitable deductions. You still get the medical expense deduction, but it's subject to a 10% floor rather than 7.5%. Therefore, you get 10K from mortgage, 5K from charitable contributions and 2K from medical expenses, which equals 17K.

I miss questions all the time because I misread them.

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[Author]

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