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56(b) are threefold. First, section 56(b)(1)(A)(i) provides that
no deduction shall be allowed for "any miscellaneous itemized
deduction (as defined in section 67(b))". Second, section
56(b)(1)(A)(ii) states that no itemized deduction for State and
local taxes shall be allowed in computing alternative minimum
taxable income. Third, section 56(b)(1)(E) states that no
personal exemptions shall be allowed in computing AMTI.
The effect of section 56(b)(1)(A)(i), (ii), and (b)(1)(E) is
to increase petitioner's taxable income amount by: (1) $39,224,
the amount claimed on petitioner's Schedule A as miscellaneous
deductions for unreimbursed employee expenses; (2) $4,999, the
amount claimed on petitioner's Schedule A for State and local
taxes; and (3) $2,750, the amount claimed on petitioner's Form
1040 for a personal exemption.
After taking into account the foregoing three adjustments,
petitioner's AMTI for 1999 is $54,719. Petitioner's AMTI exceeds
the applicable exemption amount of $33,750 by $20,969. See sec.
55(d)(1)(A)(i). Petitioner's tentative minimum tax is therefore
26 percent of that excess, or $5,452. See sec.
55(b)(1)(A)(i)(I). Because petitioner's TMT exceeds petitioner's
regular tax of $1,219, petitioner is liable for the alternative
minimum tax in the amount of such excess, $5,452 less $1,219, or
$4,233.
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