Problem
On their joint tax return, Wade and Dorothy, both age 40, had adjusted gross income (AGI) of $150,000 and claimed the following itemized deductions:
a) Interest of $15,000 on a $100,000 home equity loan to purchase a motor home
b) Real estate tax and state income taxes of $18,000
c) Unreimbursed medical expenses of $17,000 (prior to AGI limitation)
Based on these deductions, what would be the amount of AMT add-back adjustment in computing alternative minimum taxable income?