113 T.C. No. 12
UNITED STATES TAX COURT
PAUL J. PEKAR, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 15289-97. Filed September 1, 1999.
P, a U.S. citizen, resided in Germany and the
United Kingdom during his 1995 tax year. He paid
resident income tax to the foreign countries in an
amount exceeding his reported U.S. income tax
liability. P claimed a foreign tax credit that reduced
his U.S. income tax to zero. P did not compute or
report liability for the alternative minimum tax (AMT)
under sec. 55, I.R.C., or the foreign tax credit
limitations under sec. 59, I.R.C. P claimed that the
sec. 59, I.R.C., limit on foreign tax credits violated
the double taxation prohibitions of the U.S. income tax
treaties with Germany and the United Kingdom.
Held: The U.S.-Germany treaty and the U.S.-United
Kingdom treaty interpreted--P is not entitled to relief
from the AMT under either treaty. Held, further, the
U.S.-Germany treaty recognizes and does not prohibit
the sec. 59, I.R.C., limit as double taxation. Held,
further, even if the U.S.-United Kingdom treaty
conflicts with sec. 59, I.R.C., because of the
established last-in-time rule, the sec. 59, I.R.C.,
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