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allowable itemized deductions when he claimed the standard
deduction for regular tax purposes is without merit.
We have reviewed respondent’s computations of petitioner’s
AMT for 1999 and find that they comport with the provisions of
sections 55 and 56. However, respondent did not include the
$578.08 of tax-exempt interest from private activity bonds
reported on petitioner’s Form 6251 when respondent determined the
AMTI amount. Had respondent correctly included this amount, the
AMTI would have been increased by $578.08, thereby increasing
petitioner’s AMT by an additional $150.31. Because respondent
did not either include the tax-exempt interest in the AMT
computation included in the notice of deficiency or assert a
claim for an increased deficiency pursuant to section 6214(a)
petitioner is not subject to the additional $150.31 of AMT.
Because petitioner claimed the standard deduction in
computing taxable income for regular tax purposes, he is required
to use the standard deduction amount when determining AMTI for
AMT purposes. Accordingly, petitioner is precluded from using
itemized deductions for AMT purposes and is liable for the
$439.45 of AMT determined by respondent. Respondent is sustained
on this issue.
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