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recompute the itemized deductions actually claimed as if the
section 68 limitation did not apply.
Nowhere in section 56(b) is there a provision that allows
the taxpayer to make AMTI adjustments for itemized deductions
when the taxpayer claimed the standard deduction in computing
regular taxable income. Nor does section 56(b) specifically
allow the taxpayer to limit his AMT liability by choosing between
the AMTI adjustments for the standard deduction or itemized
deductions for AMT purposes when the taxpayer claimed the
standard deduction for regular tax purposes. The Code simply
does not allow the taxpayer to pick and choose which section
56(b) adjustments apply in an attempt to get favorable AMT
treatment. Once the taxpayer either elects to itemize deductions
or claims the standard deduction for regular tax purposes, the
taxpayer must make section 56(b) adjustments that directly
correspond to the deductions claimed for regular tax purposes.
Specifically addressing petitioner’s argument, section
56(b)(1)(F) provides only that the section 68 limitation on
itemized deductions shall not apply when computing AMTI. This
provision by its terms does not apply to itemized deductions that
would have been limited by section 68 had the taxpayer not
claimed the standard deduction instead. Rather, section
56(b)(1)(F) simply provides that section 68 shall not apply, so
that a taxpayer who elected to itemize deductions for regular tax
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Last modified: May 25, 2011