1. Abbygail, who is single, had taxable income of $120,000 for 2015. She had positive AMT adjustments of $35,000; negative AMT adjustments of $16,000; and tax preference items of $45,000.
a. Compute her alternative minimum taxable income (AMTI).
b. Assume the same facts as in part a. Compute Abbygail's tentative minimum tax.
2. Joe and John form the equal JJ Partnership. Joe contributes cash of $80,000. John contributes property with an adjusted basis of $50,000 and a fair market value of $80,000.
A. How much gain, if any, must Joe recognize on the transfer? Must John recognize any gain? If so, how much?
B. What is Joe's basis in her partnership interest?
C. What is John's basis in her partnership interest?
D. What is the partnership's basis in the property contributed by John?