Problem:
Alternative Minimum Tax - Computation. B is single and reports the following items of income and deductions for the current year (before limitations):
Salary . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$550,000
Net short-term capital gain on sale
of investment property . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Interest income...............................................................................8,500
Qualifying dividend income...............................................................11,750
Medical expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,500
Casualty loss . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14,500
State and local income taxes .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000
Real estate taxes. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,000
Charitable contributions (all cash) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,000
Interest on home mortgage . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . 22,000
Investment interest expense...............................................................20,000
The only additional transaction during the year was the exercise of an incentive stock option of her employer's stock at an option price of $12,000 when the stock was worth $225,000.
Compute B's regular tax liability (including Medicare Surtaxes on wages and net investment income) and the Alternative Minimum Tax, if applicable for 2023.