Lauren Ostrow and Joseph Teiger - Page 7

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               stockholder to a cooperative apartment corporation                     
               within the taxable year. * * *  The general purpose of                 
               this provision is to place the tenant stockholders of a                
               cooperative apartment in the same position as the owner                
               of a dwelling house so far as deductions for interest                  
               and taxes are concerned.                                               
          S. Rept. 1631, 77th Cong., 2d Sess. 51 (1942), 1942-2 C.B. 504,             
          546.                                                                        
               Under section 23(z) of the Internal Revenue Code of 1939, a            
          stockholder in a cooperative apartment corporation could deduct             
          real estate taxes and interest to the same extent as an                     
          individual homeowner.  S. Rept. 1622, 83d Cong., 2d Sess. 36                
          (1954).  The Senate Finance Committee intended to treat tenant-             
          stockholders of a cooperative and homeowners similarly with                 
          respect to the deduction of real estate taxes and interest.  S.             
          Rept. 1631, supra at 51, 1942-2 C.B. at 546.5                               
          C.   Whether a Deduction Under Section 216 Reduces AMTI                     
               1.   Petitioners’ Contentions                                          
               The deductions allowed under section 216 are not                       
          specifically listed in the relevant alternative minimum tax                 
          provision (section 56(b)) as deductions that are disallowed in              
          computing AMTI.  Petitioners contend that if Congress had                   
          intended to deny section 216 deductions in computing AMTI, it               
          would have done so expressly.                                               


               5 In conference, the House receded to the Senate amendment             
          without substantive comment.  H. Rept. 2586, 77th Cong., 2d Sess.           
          40 (1942), 1942-2 C.B. 701, 705.                                            





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