[decent n in charge]

ok so i don’t know why they used only 300 of home equity…

Betty is age 34 and has AGI of $50,000. The following items may qualify as itemized deductions for Betty

Qualified medical expenses = $4,000

Real estate tax = $1,200

State income tax = $800

Charitable contributions = $600

Mortgage interest on acquisition indebtedness = $2,000

Home equity interest on a loan not used to improve the home = $2,000

Miscellaneous itemized deductions = $1,500

What is the itemized deduction add-back for the AMT?

a.$2,800 (correct answer)

b.$3,800

c.$8,800

d.$2,500

They used 1200 real estate (i agree), 800 state income taxes (agree), 500 misc item deduction (agree), 300 of home equity interest loan that was not used to improve their home/ qualified dwelling (agree with the reason but not the amount, it should be the full 2000 right?)

[KJF1031]

A lot of the stuff I'm reading in Becker is contradicting itself with the MCQ on AMT as well, not sure lol.

I would think the answer is 4,500 as well.

BEC: Passed (8/31)
AUD: Passed (11/20)
FAR: Passed (2/26)
REG: 5/22

[decent n in charge]

well basically there are 10 questions in the final hw session for section 2 that relate to this question asked. they got it jacked up.

[pracap]

I think answer should be $ 1200+800+500=$2500

AUD - 81
BEC - 79
FAR - 80
REG - 79

pracap

[Zuly]

@tmak I had this same question in the Roger IPQs and didn't understand it either because I would have thought the same as you. The entire $2000 that was not used to improve the home was supposed to be added back to taxable income to come up with AMT…could it be a typo? I don't know…

FAR - (11/01/14) 71 (02/07/15) 79
AUD - (04/30/15) 86
BEC - (07/21/15) 73 (10/01/15) 75
REG - (11/30/15) 55 (05/19/16) 74

[Author]

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