Brooklyn files as a head of household for 2022. They claimed the standard deduction of $19,400 for regular tax purposes. Their regular taxable income was $80,000. What is Brooklyn's AMTI? Description (1) Regular taxable income (2) Standard Deduction AMTI $ Amount 80,000 19,400

Brooklyn files as a head of household for 2022. They claimed the standard deduction of $19,400 for regular tax purposes. Their regular taxable income was $80,000. What is Brooklyn's AMTI? Description (1) Regular taxable income (2) Standard Deduction AMTI $ Amount 80,000 19,400

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter9: Individuals As Taxpayers

Section: Chapter Questions

Problem 4CE

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

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Brooklyn files as a head of household for 2022. They claimed the standard deduction of $19,400 for regular tax purposes. Their regular taxable income was $80,000.

What is Brooklyn's AMTI?

Expert Solution

Step 1

AMTI

AMTI is the abbreviated form of Alternate minimum taxable income. This amount is used for taxation purposes and can be determined by summing up the applicable deductions to the amount of taxable income of the taxpayer.

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