1. Alcott invested $20,000 for a 25% interest in a (not a passive activity) on January 1, 2015 The borrowed $100,000 (with full recourse to the partners) on January 15, 2015, to cover short-term cash flow requirements. During the year, the generated a$60,000 loss. By December 31, 2015, the had paid off $20,000 of the loan. What is Alcott’s at-risk amount on January 1, 2016?
a.$20,000.
b.$25,000.
c.$40,000.
d.$45,000.
2. Jacob is single with no dependents. During 2015, he has $48,000 of taxable income. He also has $28,000 of positive AMT adjustments and $12,000 of tax preferences. Jacob does not itemize his deductions but takes the standard deduction. Calculate his AMTI.
a. $88,000.
b. $91,950.
c. $94,300.
d. $98,300.
3.Paul reported the following itemized deductions on his 2015 tax return. His AGI for 2015 was $65,000. The mortgage interest is all qualified mortgage interest to purchase his personal residence. For AMT, compute his total adjustment for itemized deductions.
Medical expenses (after the 10.0% of AGI floor)……………………….$6,000
State income taxes…………………………………………………………………….3,600
Home mortgage interest………………………………………………………….11,500
Charitable contributions…………………………………………………………….3,200
Miscellaneous itemized deductions (after the 2% of AGI floor)……1,800
a. $1,800.
b. $3,600.
c. $5,400.
d. $20,100.
4. After computing all tax preferences and AMT adjustments, Phillip and his wife Carmin have AMTI of $210,000. If Phillip and Carmin file a joint tax return, what exemption amount can they claim for AMT for 2015?
a. $ 0.
b.$53,600..
c.$70,625..
d.$83,400.
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