​ in the Current Tax Year David, a 32-Year-Old Single

question 64

Multiple Choice

​ In the current tax year David, a 32-year-old single taxpayer, reported itemized deductions of $24,500, comprised 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 create an AMT preference.

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Definitions:

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, coordinating its actions and sensory information.

Action Potential

A brief electrical impulse by which information is transmitted along the axon of a neuron.

Electrical Charge

A fundamental property of matter that causes it to experience a force when placed in an electromagnetic field, existing in two types: positive and negative.

Dendrite

A branched extension of a neuron that receives impulses from other neural cells and transmits them toward the cell body.