- 4 - petitioner completed the Form 6251 and submitted a copy to respondent. In computing his alternative minimum taxable income (AMTI) on Form 6251, petitioner made the following three adjustments: (1) He increased the AMTI amount by the $9,250.10 of taxes paid during the year; (2) he increased the AMTI amount by $578.08 for tax-exempt interest from private activity bonds issued after August 7, 1986; and (3) he decreased the AMTI amount by the $7,400.08 that represents the amount by which his otherwise allowable itemized deductions would have been limited had he elected to itemize his deductions for regular tax purposes. Petitioner made no adjustment to his AMTI for the $4,300 standard deduction he actually deducted on Form 1040. On the basis of his above adjustments in arriving at AMTI, petitioner determined that he owed no AMT for 1999. Upon reviewing petitioner’s Form 6251, respondent disallowed petitioner’s adjustments to AMTI for the itemized deductions that were not used in computing regular taxable income. Respondent’s position is that taxpayers who claim the standard deduction for regular tax purposes may not use itemized deductions for AMT purposes. Respondent recomputed petitioner’s AMTI by making an increasing adjustment for the $4,300 standard deduction claimed on petitioner’s Form 1040. Respondent made no correspondingPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011