Dan and Maureen File a Joint Income Tax Return for 2018.They

question 55

Essay

Dan and Maureen file a joint income tax return for 2018.They have two dependent children, ages 7 and 9.Together they earn wages of $830,000.They also receive taxable interest income of $8,000 and interest on City of Los Angeles bonds of $78,000.During 2018, they received a state income tax refund of $3,000 relating to their 2017 state income tax return on which they itemized deductions.Their expenses for the year consist of the following:​ $$\begin{array} { l r } \text { Home mortgage interest (on acquisition debt) } & \$ 19,000 \\\text { Interest on credit cards } & 2,000 \\\text { Real property taxes } & 8,300 \\\text { Cash contributions } & 75,000 \\\text { State income taxes withheld } & 48,000\end{array}$$ Calculate Dan and Maureen's tentative minimum tax liability assuming an AMT exemption amount of $109,400, before any phase-outs.Show your calculations.

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Definitions:

Catalyst-Damaging

Pertaining to substances or conditions that can degrade or impair the function of a catalytic converter, which is an emissions control device in vehicles.

DTC

Diagnostic Trouble Codes, codes generated by a vehicle's onboard diagnostics system to indicate a problem.

SAE

Society of Automotive Engineers, an organization that sets standards for engineering professionals in various industries, especially automotive.

Manufacturer-Specific

Pertaining to features, parts, or protocols that are unique to a particular brand or maker's products.