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LO) and nonlife consolidated taxable income (or loss) does not
affect the usual rules in secs. 1.1502-0--1.1502-80 unless this
section provides otherwise.”).
B. Alternative Minimum Tax
Section 55(a) imposes, in addition to any regular tax owed,
an AMT equal to the excess of the tentative minimum tax over the
regular tax for the taxable year. The tentative minimum tax for
corporate taxpayers is 20 percent of the amount by which
alternative minimum taxable income (AMTI) exceeds the applicable
exemption amount, reduced by the AMT foreign tax credit. Sec.
55(b)(1)(B). AMTI, in turn, is defined as the taxpayer’s taxable
income for the year determined with the adjustments provided in
sections 56 and 58 and increased by the tax preference items
described in section 57. Sec. 55(b)(2).
As pertinent here, one of the adjustments provided in
section 56 is the book income adjustment of section 56(f), as
follows:
SEC. 56(f). Adjustments for Book Income of
Corporations.--
(1) In general.--The alternative minimum
taxable income of any corporation for any taxable
year beginning in 1987, 1988, or 1989 shall be
increased by 50 percent of the amount (if any) by
which--
(A) the adjusted net book income of the
corporation, exceeds
(B) the alternative minimum taxable
income for the taxable year (determined
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