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7 April, 12:36

Farr, an unmarried taxpayer, had $70,000 of adjusted gross income and the following deductions for regular income tax purposes:

Home mortgage interest on a loan to acquire a principal residence $ 11,000

Miscellaneous itemized deductions above the threshold limitation 2,000

What are Farr's total allowable itemized deductions for computing alternative minimum taxable income?

a. $13,000

b. $2,000

c. $11,000

d. $0

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  1. 7 April, 13:27
    0
    C) USD 11,000

    Explanation:

    Both mortgage interest and miscellaneous itemized subtraction are deductible for casual tax payment.

    Moreover, miscellaneous itemized deduction are "adjustments" so, are not able as deductions for alternative minimum tax purpose.
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