What is the solution to this problem?
Sylvester files as a single taxpayer during 2014 and claims one personal exemption. He itemizes deductions for regular tax purposes. He paid charitable contributions of $8,800, real estate taxes of $3,100, state income taxes of $7,750, and interest on a home-equity loan of $3,200. Sylvester's regular taxable income is $178,000.
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a.
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What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car?
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b.
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What is Sylvester's AMTI if he used the home-equity loan proceeds to build a new garage next to his home?
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