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Alternative minimum taxable income:
Taxable income (before
deductions for exemptions) $30,498
Adjustments:
Misc. itemized deductions 12,315
Taxes 1,861
Total adjustments 14,176
44,674
Exemption amount 20,000
Tentative minimum taxable income 24,674
x 24%
Tentative minimum tax 5,922
Regular tax 4,274
AMT $1,648
Petitioner does not challenge respondent's calculation of the
tax. He argues, rather, that the AMT imposed by section 55(a)
unconstitutionally distinguishes between the expenses of self-
employed individuals and employees in violation of the Due
Process Clause of the Fifth Amendment.
Generally, under the AMT scheme an individual's tax
liability is equal to 24 percent of the so-called "tentative
minimum taxable income", which is the excess of the "alternative
minimum taxable income" (AMTI) over the exemption amount provided
by section 55(d)(1). Sec. 55(b)(1). AMTI is determined,
generally, through adjustments to the taxpayer's taxable income
pursuant to sections 56, 57, and 58. Sec. 55(b)(2). In
determining the AMTI of individuals, no deduction is allowed for
miscellaneous itemized deductions. Sec. 56(b)(1)(A)(i). The
trade or business expenses of a self-employed taxpayer, however,
are deductible "above the line" in arriving at adjusted gross
income under section 62(a)(1); generally these deductions are not
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Last modified: May 25, 2011