- 3 - housing corporation is an adjustment for purposes of computing the AMT. Thus, respondent recalculated and increased petitioner’s AMT in the amount of $4,255. Section 216 allows a tenant-stockholder to deduct amounts (not otherwise deductible) paid or accrued to a cooperative housing corporation within the taxable year, to the extent that such amounts represent the tenant-stockholder’s proportionate share of the real estate taxes allowable as a deduction to the corporation under section 164. Sec. 216(a)(1); sec. 1.216- 1(a)(1), Income Tax Regs. Section 164 allows a deduction for real property taxes paid or accrued within the taxable year. Sec. 164(a)(1); sec. 1.164-1(a)(1), Income Tax Regs. Section 55 imposes an alternative minimum tax (AMT) on taxpayers, in addition to any other income tax imposed. An individual’s AMT is determined by a recomputation of the individual’s taxable income, which results in a new tax base, the AMT income. Sec. 55(b)(2). In determining the AMT income, certain adjustments are required and no deduction is allowed for any miscellaneous itemized deduction (as defined in section 67(b)), or for any taxes described in section 164(1), (2), or (3), except for a non-pertinent exception. Sec. 56(b)(1)(A). We have held previously that the text of the AMT statute is unambiguous. Klaassen v. Commissioner, T.C. Memo. 1998-241, affd. without published opinion 182 F.3d 932 (10th Cir. 1999).Page: Previous 1 2 3 4 5 Next
Last modified: May 25, 2011