James Brian Medis - Page 7

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          itemized deductions on the amended return, he has not presented             
          any evidence to substantiate that he is entitled to these                   
          additional deductions.  Instead, petitioner contends that the               
          total itemized deductions should not be limited when he                     
          accurately answered the following question on line 28 of Schedule           
          A:  “Is Form 1040, line 34, over $128,950 (over $64,475 if                  
          married filing separately)?”  This limitation, however, is based            
          upon section 68 and not upon section 67, the latter of which, as            
          indicated earlier, is the basis of respondent’s determination.              
               We conclude that petitioner is entitled to claim total                 
          itemized deductions of $34,638 for the 2000 taxable year, an                
          amount $243 less than $34,881 claimed on the 2000 income tax                
          return.  Accordingly, we sustain respondent’s determination with            
          respect to this issue.                                                      
          Alternative Minimum Tax                                                     
               Respondent determined that petitioner is liable for an AMT             
          of $4,802 for the 2000 taxable year.  Section 55 imposes, in                
          addition to all other taxes imposed by subtitle A, an AMT on                
          noncorporate taxpayers.  The determination of a noncorporate                
          taxpayer’s AMT requires a recomputation of taxable income,                  
          leading to a new tax base or an alternative minimum taxable                 
          income.  Sec. 55(b)(2).  In making the recomputation, certain               
          (but not all) itemized deductions are not allowed, nor is the               
          personal exemption.  In particular, miscellaneous itemized                  






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