Question: AMT Adjustments and Computation of Tax. Allen, a single taxpayer, reports the follow¬ing items on his 2006 federal income tax return:
Adjusted gross income $75,000
Taxable income 48,000
Regular tax liability 8,558
Tax preferences 20,000
Itemized deductions including:
Charitable contributions 7,500
Medical expenses (before AGI floor) 10,000
Mortgage interest on personal residence 10,000
State income taxes 5,000
Real estate taxes 8,000
Q1. What is the amount of Allen's AMT adjustments related to the itemized deductions?
Q2. What is Allen's AMT liability for the current year?