Used the home-equity proceeds to purchase a car

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Sylvester files as a single taxpayer during 2016 and claims one personal exemption. He itemizes deductions for regular tax purposes. He paid charitable contributions of $9,700, real estate taxes of $3,500, state income taxes of $6,000, and interest on a home-equity loan of $3,900. Sylvester’s regular taxable income is $126,000.

a. What is Sylvester's AMTI if he used the home-equity proceeds to purchase a car?

b. What is Sylvester's AMTI if he used the home-equity loan proceeds to build a new garage next to his home?

Reference no: EM131284751

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