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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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