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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
Division.
Decision will be entered
for respondent.
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Last modified: May 25, 2011