Eileen Is a Single Individual with No Dependents

question 49

Essay

Eileen is a single individual with no dependents. Her adjusted gross income for 2018 is $60,000. She has the following items that qualify as itemized deductions. What is the amount of Eileen's AMT adjustment for itemized deductions for 2018?
$$\begin{array} { l r } \text { Medical expenses (before limitations) } & \$ 12,000 \\\text { Mortgage interest on a qualified residence } & 8,000 \\\text { Charitable contribution of a Rockwell portrait } & \\\text { (\$12,000 FMV; } \$ 10,000 \text { basis) } & 12,000 \\\text { State income taxes paid and withheld } & 3,200 \\\text { Real estate taxes paid } & 2,500\end{array}$$

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, providing a portion of the profits to shareholders in the form of dividends.

Annual Coupon

Annual Coupon refers to the yearly interest payment that bondholders receive from the bond's issue date until it matures.

Face Value

Face value refers to the nominal value or original cost of a security as stated by its issuer, crucial for calculating interest payments for bonds.

Dollar Return

The total profit or loss in dollar terms from an investment, including both capital gains and dividends or interest.