- 22 -
Respondent also quotes the following language from the
General Explanation of the 1986 Act:
STRUCTURE OF MINIMUM TAX AS AN ALTERNATIVE
SYSTEM.--For most purposes, the tax base for the new
alternative minimum tax is determined as though the
alternative minimum tax were a separate and independent
income tax system. Thus, for example, where a Code
provision refers to a ‘loss’ of the taxpayer from an
activity, for purposes of the alternative minimum tax
the existence of a loss is determined with regard to
the items that are includable and deductible for
[alternative] minimum tax, not regular tax, purposes.
In certain instances, the operation of the
alternative minimum tax as a separate and independent
tax system is set forth expressly in the Code. With
respect to the passive loss provision, for example,
section 58 provides expressly that, in applying the
limitation for minimum tax purposes, all minimum tax
adjustments to income and expense are made and regular
tax deductions that are items of tax preference are
disregarded.
In other instances, however, where no such express
statement is made, Congress did not intend to imply
that similar adjustments were not necessary. Thus, for
example, for [alternative] minimum tax purposes it was
intended that section 1211 (limiting capital losses) be
computed using [alternative] minimum tax basis, that
section 263A (requiring the capitalization of certain
depreciation deductions to inventory) apply with regard
to [alternative] minimum tax depreciation deductions,
and that section 265 (relating to expenses of earning
tax-exempt income) apply with regard only to items
excludable from alternative minimum taxable income.
[General Explanation of the 1986 Act, supra at 438; fn.
refs. omitted and alterations made by respondent.]
We do not believe that the “legislative history” referenced
by the parties displaces our plain and unambiguous reading of the
9(...continued)
282, 1986-3 C.B. (Vol. 4) at 282.]
Page: Previous 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NextLast modified: May 25, 2011