In the Current Tax Year David, a 32-Year-Old Single Taxpayer

question 44

Multiple Choice

In the current tax year David, a 32-year-old single taxpayer, reported itemized deductions of $24,500, composed of the following amounts.
$6,000 of medical expenses (in excess of 10% of AGI)
$4,500 of property taxes on his home
$2,500 of investment expenses (not limited by investment income)
$3,000 of charitable contributions
$8,500 of home mortgage interest
Which of David's itemized deductions could create an AMT preference?

• A)All of the itemized deductions potentially create an AMT preference.
• B)The deduction for medical expenses and property taxes potentially create an AMT preference.
• C)The deduction for investment expenses and property taxes potentially create an AMT preference.
• D)None of the itemized deductions potentially creates an AMT preference.

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Definitions:

Index

A list or directory used to simplify the search for specific information, often found at the end of books or in databases.

Main Term

The primary or central word used in medical coding to identify a diagnosis, condition, procedure, or other concept.

CPT

Current Procedural Terminology, a set of codes used by medical professionals to standardize billing for procedures and services.

ICD

International Classification of Diseases, a coding system used to classify and code diagnoses, symptoms, and procedures.