- 11 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
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