- 2 -
Respondent determined a deficiency of $4,255 in petitioner’s
1999 Federal income tax. This Court must decide whether a
deduction allowed under section 216 for real estate taxes paid in
connection with a cooperative housing corporation is an
adjustment for purposes of the alternative minimum tax (AMT).
This case was submitted fully stipulated pursuant to Rule
122. All of the facts stipulated are so found. Petitioner
resided in New York, New York, at the time she filed her
petition. Section 7491 does not apply because this case involves
a legal issue.
During taxable year 1999, petitioner was a tenant-
shareholder of a cooperative housing corporation. In connection
with the cooperative housing corporation, petitioner was entitled
to deduct real estate taxes in the amount of $13,092 as her
proportionate share of such taxes paid by the cooperative.
Petitioner deducted this amount on Schedule A, Itemized
Deductions, as “Co-op Real Estate Taxes” under “Other
Miscellaneous Deductions”. Petitioner did not include the
$13,092 as an adjustment for taxes on the Form 6251, Alternative
Minimum Tax - Individuals, attached to her return.
Respondent contends that the amount at issue was improperly
characterized as a miscellaneous deduction but that regardless
where deducted on Schedule A, a deduction allowed under section
216 for real estate taxes paid in connection with a cooperative
Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011