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section 1301 precludes applicability of the alternative minimum
tax under section 55; alternatively, if section 55 is applicable,
whether the "regular tax" in section 55(a)(2), which offsets the
tentative minimum tax under section 55(a)(1), means the tax
calculated under section 1, without the benefit of income
averaging under section 1301.
This case was submitted fully stipulated under Rule 122.
The agreed facts and the attached exhibits are so found and are
incorporated herein by reference. At the time of his death, Mr.
Haugen was a resident of Lewistown, Montana. At the time the
petition was filed, Mrs. Haugen was a legal resident of
Lewistown, Montana.4
Petitioners were in the cattle ranching business. They
owned and operated a 7,000-acre cattle ranch near Lewistown,
Montana, for nearly 30 years. Shortly after Mr. Haugen's death
in 1998, petitioner, Mrs. Haugen, began liquidation of the
business by selling the ranch and the assets used in its
operation.
A joint Federal income tax return was filed by petitioners
for 1998. The tax shown on that return was $74,977, based on the
income-averaging provisions of section 1301. The return included
4 Since the facts are not in dispute, the Court decides
this case without regard to which party bears the burden of
proof. Sec. 7491, therefore, is not applicable in this case.
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