- 4 - Section 55(a) imposes a tax equal to the excess of the tentative minimum tax over the regular tax. The tentative minimum tax for noncorporate taxpayers is equal to 26 percent of the amount (the taxable excess), as does not exceed $175,000, by which the alternative minimum taxable income (AMTI) exceeds the exemption amount, plus 28 percent of such taxable excess as exceeds $175,000. See sec. 55(b)(1)(A). The exemption amount for married couples filing a joint return is $45,000. See sec. 55(d). AMTI equals the taxpayer's taxable income for the year with the adjustments provided in sections 56 and 58 and increased by the amount of tax preference items described in section 57. See sec. 55(b)(2). In calculating AMTI, no deduction is allowed for miscellaneous itemized deductions and State and local taxes paid, unless such amounts are deductible in determining AGI. See sec. 56(b)(1). Also, no deduction for personal exemptions under section 151 is allowed. See sec. 56(b)(1)(E). In computing petitioners' AMTI for the year in issue, respondent disallowed petitioners' deductions for taxes paid and for job expenses and other miscellaneous itemized deductions. We have reviewed respondent's computations of the AMT and find that they comport with the provisions of sections 55 and 56. Petitioners, however, contend that the AMT was intended to apply to high income earners rather than to lower income taxpayers, such as themselves. Petitioners contend that ifPage: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011