question archive Dylan is a single taxpayer with $600,000 of taxable income, which results in a regular tax liability of $186,427 in 2020
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Dylan is a single taxpayer with $600,000 of taxable income, which results in a regular tax liability of $186,427 in 2020. Dylan is extremely cautious about being subject to AMT and wants to know how much AMT preferences or adjustments she can afford without being subject to AMT.
A. Compute the amount of preference and adjustments it would take for Dylan to have an AMT.
B. Comment on why it takes so many adjustments for Dylan to enter AMT.
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