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petitioners treated the $10,489 as deductible in computing their
alternative minimum taxable income.
OPINION
A. Background
Section 164 provides a deduction for real property taxes and
other specified taxes paid or accrued by the taxpayer during the
taxable year. Sec. 164(a)(1).2 In addition, a tenant-
stockholder may deduct amounts paid by or accrued to a
cooperative housing corporation within the taxable year, to the
extent that the amounts represent the tenant-stockholder's
proportionate share of (1) the real estate taxes deductible by
the corporation under section 164, sec. 216(a)(1), and (2) the
mortgage interest deductible by the corporation under section
163, sec. 216(a)(2).3
2 Sec. 164(a) provides in pertinent part:
SEC. 164. TAXES.
(a) General Rule.--Except as otherwise provided in
this section, the following taxes shall be allowed as a
deduction for the taxable year within which paid or
accrued:
(1) State and local, and foreign, real
property taxes.
(2) State and local personal property
taxes.
(3) State and local, and foreign,
income, war profits, and excess profits
taxes.
3 Sec. 216 provides in pertinent part:
(continued...)
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Last modified: May 25, 2011