1. The following information is available for the Albert and Allison Gaytor family in addition to that provided in Chapters 1-5.Albert’s grandfather died and left a portfolio of municipal bonds. In 2017, they pay Albert $80,000 in tax-free interest. Since the bonds are private activity bonds, the $80,000 is a tax preference for purposes of the AMT. Assume for Chapters 6, 7, and 8 that Albert’s federal income tax withholding from his wages is $12,000, not $6,110.
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