Carol's AMT base is $240,000. Of this amount, $35,000 represents long-term capital gain income from investments that had a preferential rate for regular tax purposes of 15%. Calculate her tentative minimum tax resulting from AMT calculations Multiple choice question. $58,652 $58,550 $62,650 $53,402

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anthougo anthougo · Answer 1 · 2021-12-10T12:45:19+01:00

Carol's tentative minimum tax resulting from AMT (Alternative Minimum Tax) calculations is B. $58,550.

Data and Calculations:

AMT base = $240,000

Less Long-term capital gain = $35,000

Remaining taxable amount under AMT rate = $205,000

AMT maximum rate = 28%

AMT minimum rate = 26%

AMT tax liability = $53,300 ($205,000 x 26%)

Capital gain tax liability = $5,250 ($35,000 x 15%)

Carol's tentative minimum tax = $58,550 ($53,300 + $5,250)

Thus, Carol's tentative minimum tax resulting from AMT (Alternative Minimum Tax) calculations is $58,550.

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