Paul J. Pekar - Page 21

                                       - 21 -                                         

               Once the AMTI is reduced by the correct exemption amount,              
          AMTI tax rates are applied to the new AMTI to arrive at the                 
          tentative minimum tax.  The rate is 26 percent of any amount up             
          to $175,000.  Petitioner's AMTI of $169,275 was reduced by                  
          $19,556, leaving $149,719 to be taxed.  Twenty-six percent of               
          that is $38,927.                                                            
               The foreign tax credit is limited to 90 percent of the                 
          tentative minimum tax amount.  Ninety percent of $38,927 is                 
          $35,034.  After this amount is applied against the tentative                
          minimum tax, the amount remaining and due from petitioner is                
          $3,893.                                                                     

Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21