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described in section 57. Petitioner had no items of tax
preference in 1997. Accordingly, alternative minimum taxable
income means petitioner’s taxable income determined with the
adjustments provided in section 56.
Petitioner’s taxable income for 1997 was $4,147, the amount
reported on line 38 of Form 1040.
As relevant herein, the adjustments provided in section
56(b) are twofold. First, section 56(b)(1)(A)(i) states that no
deduction shall be allowed for any miscellaneous itemized
deduction as defined in section 67(b), such as unreimbursed
employee expenses, in computing alternative minimum taxable
income. Second, section 56(b)(1)(E) states that no personal
exemptions shall be allowed in computing alternative minimum
taxable income.
The effect of section 56(b)(1)(A)(i) and (b)(1)(E) is to
increase petitioner’s taxable income by: (1) $26,903, the amount
claimed on petitioner’s Schedule A for miscellaneous itemized
deductions (i.e., unreimbursed employee expenses); and (2)
$5,300, the amount claimed on petitioner’s Form 1040 for personal
exemptions.
After taking into account the foregoing two adjustments,
petitioner’s alternative minimum taxable income for 1997 equals
$36,350. Alternative minimum taxable income exceeds the
applicable exemption amount of $22,500 by $13,850. See sec.
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