- 4 -
Section 55 provides for an alternative minimum tax (AMT).
3(...continued)
SEC. 216. DEDUCTION OF TAXES, INTEREST, AND BUSINESS
DEPRECIATION BY COOPERATIVE HOUSING CORPORATION
TENANT-STOCKHOLDER.
(a) Allowance of Deduction.--In the case of a
tenant-stockholder (as defined in subsection (b)(2)),
there shall be allowed as a deduction amounts (not
otherwise deductible) paid or accrued to a cooperative
housing corporation within the taxable year, but only
to the extent that such amounts represent the tenant-
stockholder's proportionate share of--
(1) the real estate taxes allowable as a
deduction to the corporation under section 164
which are paid or incurred by the corporation on
the houses or apartment building and on the land
on which such houses (or building) are situated,
or
(2) the interest allowable as a deduction to
the corporation under section 163 which is paid or
incurred by the corporation on its indebtedness
contracted--
(A) in the acquisition,
construction, alteration,
rehabilitation, or maintenance of
the houses or apartment buildings,
or
(B) in the acquisition of the
land on which the houses (or
apartment building) are situated.
Although sec. 216 refers to taxes or interest, a tenant-
stockholder may deduct his or her share of both taxes and
interest paid by a cooperative housing corporation. See Eckstein
v. United States, 196 Ct. Cl. 644, 452 F.2d 1036, 1038, 1047-1048
(1971); Park Place, Inc. v. Commissioner, 57 T.C. 767, 774
(1972); S. Rept. 1631, 77th Cong., 2d Sess. 51 (1942), 1942-2
C.B. 504, 546 (“The bill provides for a new deduction * * * of
taxes and interest paid or accrued by a tenant stockholder to a
cooperative apartment corporation”); IRS Publication 530, Tax
Information for First-Time Homeowners 3-4 (2003 ed.).
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Last modified: May 25, 2011