Roy E. and Linda Day - Page 19

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            preference items should be reduced by certain itemized deductions                            
            in calculating the taxpayers' AMT.  In Breakell, the Court was                               
            concerned that if this were not done, the taxpayers would be                                 
            subject to the AMT on an amount that "in no way produced a tax                               
            benefit."  Id. at 287.  Furthermore, the taxpayers' net operating                            
            loss deduction therein was not eligible to be carried over to a                              
            subsequent taxable year.  Id. at 284.  In contrast, as already                               
            discussed, the Days currently benefited from their tax preference                            
            items and may also indefinitely carry over liberated section 29                              
            credits to subsequent taxable years due to section 53.                                       
                  To reflect the foregoing,                                                              

                                                       Decision will be entered                          
                                                 for respondent.                                         

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