Helen Guterman - Page 5

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          It is clear from section 56(b)(1)(A)(ii) that the deduction                 
          allowed for real estate taxes paid is an adjustment for purposes            
          of calculating AMT income.  Section 216(a)(1) incorporates by               
          reference section 164, and section 164 is specifically enumerated           
          as an adjustment under section 56(b)(1)(A)(ii).  Accordingly, we            
          sustain respondent’s determination.                                         
               Petitioner also contends that she was entitled to claim the            
          deduction allowed under section 216 as a miscellaneous deduction.           
          Section 67(b)(2) and (12), respectively, exclude from                       
          miscellaneous itemized deductions “the deduction under section              
          164 (relating to taxes)” and “the deduction under section 216               
          (relating to deductions in connection with cooperative housing              
          corporations).”  Because section 67(b)(12) specifically excludes            
          any section 216 deduction from miscellaneous itemized deductions,           
          petitioner improperly characterized that deduction as a                     
          miscellaneous deduction.                                                    
               Reviewed and adopted as the report of the Small Tax Case               

                                                  Decision will be entered            
                                             for respondent.                          

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