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foreign tax credit cannot offset more than 90 percent of the
tentative minimum tax figured. See id. Petitioner's allowable
foreign tax credit is 90 percent of $38,927, or $35,034.
Therefore, his AMT, the tentative minimum tax minus the foreign
tax credit, is $3,893. Because he had no regular tax due, he
owes $3,893.4
Application of the Treaties
In his challenge of the deficiency determined by respondent,
petitioner does not question respondent's calculation of the AMT.
Instead, he labels as "unfair" the AMT as applied to American
citizens like himself who live permanently outside the United
States. At trial, petitioner referenced the double taxation
protection given to expatriates by our tax treaties with the
United Kingdom and Germany. See Convention for the Avoidance of
Double Taxation, and Three Protocols, Dec. 31, 1975-Mar. 15,
3(...continued)
U.S. taxpayers with substantial economic incomes.”
[Lindsey v. Commissioner, 98 T.C. 672, 675 (1992)
(quoting S. Rept. 99-313, at 520 (1986), 1986-3 C.B.
(Vol. 3), 1, 520), affd. without published opinion 15
F.3d 1160 (D.C. Cir. 1994); some emphasis added.]
4 Petitioner reported $42,991 of regular tax and claimed an
equal amount of foreign tax credit unreduced by the AMT
limitations. The amount of the limitation on the credit is based
on the AMT and not on the $42,991 of tax reported by petitioner
before he claimed the credit. Respondent's computation of the
amount of the AMT, limitations on the foreign tax credit, and the
resulting AMT liability are set forth in the appendix.
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