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tax is the amount in excess of, and in addition to, any regular
tax owed.
The tentative minimum tax for noncorporate taxpayers is
equal to 26 percent of so much of the taxable excess as does not
exceed $175,000. Sec. 55(b)(1)(A)(i). The taxable excess is
that amount by which the alternative minimum taxable income
(AMTI) exceeds the exemption amount. Sec. 55(b)(1)(A)(ii). The
exemption amount for married couples filing a joint return is
$45,000. Sec. 55(d)(1)(A).
AMTI equals the taxpayer’s taxable income for the year
determined with the adjustments provided in section 56 and
increased by the amount of tax preference items described in
section 57. Sec. 55(b)(2). In calculating AMTI, no deduction is
allowed for State and local income taxes paid and miscellaneous
itemized deductions. Sec. 56(b)(1)(A). Also, no deduction for
personal exemptions under section 151 is allowed. Sec.
56(b)(1)(E).
Petitioners did not file Form 6251 with their 1998 return.
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 alternative minimum tax
3(...continued)
26(b))”. Sec. 55(c)(1).
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Last modified: May 25, 2011