David M. Marx - Page 9




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                    (A) In general.-–No deduction shall be allowed–                   
               *      *      *      *      *      *      *                            
                    (ii) for any taxes described in paragraph                         
               (1), (2), or (3) of section 164(a).                                    
               *      *      *      *      *      *      *                            
                    (E) Standard deduction and deduction for                          
               personal exemptions not allowed.–-The standard                         
               deduction under section 63(c), the deduction for                       
               personal exemptions under section 151, and the                         
               deduction under section 642(b) shall not be allowed.                   
                    (F) Section 68 not applicable.–-Section 68                        
               shall not apply.                                                       
               When reviewed in its entirety and given full effect, section           
          56(b) provides for adjustments for taxpayers who either claimed             
          the standard deduction or elected to itemize deductions for                 
          regular tax purposes.  Since AMTI is determined by making                   
          adjustments to regular taxable income, the section 56(b)(1)                 
          adjustments correspond to items that were used to determine the             
          taxpayer’s regular taxable income.  Thus, if the taxpayer claimed           
          the standard deduction for regular tax purposes, section                    
          56(b)(1)(E) requires an adjustment in arriving at AMTI for the              
          standard deduction amount.  Accordingly, if the taxpayer elected            
          to itemize deductions, section 56(b)(1) requires adjustments in             
          arriving at AMTI for certain itemized deductions claimed for                
          regular tax purposes.  Further, if the itemized deductions                  
          actually claimed for regular tax purposes were limited pursuant             
          to section 68, section 56(b)(1)(F) requires the taxpayer to                 






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Last modified: May 25, 2011