108 T.C. No. 2
UNITED STATES TAX COURT
ROY E. AND LINDA DAY, Petitioners v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 20732-94. Filed January 9, 1997.
R determined deficiencies in Ps' Federal income
tax for the years 1988 through 1990. Ps seek to
augment the amount of sec. 29, I.R.C., nonconventional
fuel source credits they may take against regular
income tax by increasing the availability of such
credits under the sec. 29(b)(5), I.R.C., limitation.
Ps argue that if their taxable income in each year had
not been reduced by tax preference items, the resulting
tax payable on that income would nonetheless have been
the same due to sec. 29, I.R.C., credits generated in
these years. R contends that relief under the sec.
59(g), I.R.C., tax benefit rule is not warranted. The
preferences, by reducing Ps' taxable income, allowed an
increased amount of sec. 29, I.R.C., credits to go
unused in the years generated and thereby increased the
sec. 29, I.R.C., credits available to be carried over
indefinitely pursuant to sec. 53, I.R.C. Held: Ps are
not entitled to use the sec. 59(g), I.R.C., tax benefit
rule to reduce their tentative minimum tax in order to
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