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Fella
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Joined: 19 Nov 2011
Location: United States
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Posts: 68
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| Posted: 12 Aug 2012 at 16:52 | IP Logged
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Hi everyone,
I was just doing an MC on AMT. It contains several
deduction and the question is what are the add-backs.
I added back:
taxes,
real estate interest not used to buy/build a house,
misc expenses in excess of AGI x 2%
and then I did not add medical expenses which were equal
to 10% of AGI. I read in the book that medical expenses
will be added back if they are more than 10% of AGI. In
this case they equaled exactly to the 10% of AGI. My
answer was not even available among four choices. Their
answer shows 10% of AGI - 7.5% of AGI = add back. Is my
book wrong???? I am confused...
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lauritta
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| Posted: 13 Aug 2012 at 00:00 | IP Logged
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Your book is correct. Medical expenses for the AMT purposes: you have to use 10% not 7.5%. You have already deducted 7.5%, now you have to bring it to 10%. That is why you add back only the difference 10%-7.5%.
__________________
FAR - passed
REG - passed
AUD -
Wiley, some lectures from Becker
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Fella
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Joined: 19 Nov 2011
Location: United States
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Posts: 68
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| Posted: 13 Aug 2012 at 17:30 | IP Logged
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Okay, thank you. I did another MC today and it had same
question. So, it is 10-7.5%. Now it's more clear than
before. I appreciate it.
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Topic: AMT Medical Expenses
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