Noman Earl Holly - Page 3

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               Charitable contributions                        885                    
               Unreimbursed job-related                                               
               legal expenses                             30,247                      
               Moving expenses                               1,145                    
               Total                                      33,002                      
          The taxable income reflected on line 37 of petitioner's return is           
          $13,927, and the total tax reflected on line 53 of the return,              
          after being reduced by a foreign tax credit, is $1,850.  During             
          the taxable year 1994, petitioner was a retired Government                  
          employee.  On his return for the taxable year 1994, petitioner              
          indicated "Self-employed consultant" as his occupation.                     
               Respondent does not dispute the correctness of any item of             
          income, deduction, or credit reflected on petitioner's return for           
          the taxable year 1994.  Respondent, however, argues that                    
          petitioner is subject to the AMT, and, accordingly, has                     
          determined a deficiency in the amount of $1,675.  Petitioner                
          argues that the AMT was created to apply only to higher income              
          taxpayers, and, accordingly, the AMT is not applicable in this              
          instance because he was not a high income taxpayer during the               
          taxable year in issue.                                                      
               Section 55(a) imposes an AMT on taxpayers to the extent that           
          their "tentative minimum tax", as calculated pursuant to section            
          55(b), exceeds the "regular tax", defined in section 55(c)(1) as            
          the regular tax liability for the taxable year reduced by the               
          foreign tax credit.  Section 55(b)(1)(A) provides that for                  

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