- 8 -
Petitioners point out that, in listing deductions that are
not subject to the 2-percent floor of section 67(a), section
67(b) refers separately to “the deduction under section 164
(relating to taxes)” and “the deduction under section 216
(relating to deductions in connection with cooperative housing
corporations)”. Petitioners also point out that section
911(c)(2)(A)(ii) refers both to taxes deductible under section
164 and amounts allowed as deductions under section 216.
Petitioners contend that those provisions show that where
Congress intended to make an Internal Revenue Code provision
apply to section 216, Congress did so explicitly.
Thus, in sum, petitioners contend that Congress’s failure to
list section 216 in section 56(b) shows that section 216(a)(1)
deductions are allowed in computing AMTI. We disagree because of
section 56(b)(1)(A)(ii), and because petitioners’ position would
cause dissimilar tax treatment of homeowners and tenant-
stockholders in cooperative housing corporations, a result at
odds with longstanding expressions of congressional intent.
2. Statutory Analysis
“[T]axes described in” paragraph (1), (2) or (3) of section
164(a) are not deductible in computing AMTI. Sec.
56(b)(1)(A)(ii). A tenant-stockholder may deduct an amount equal
to his or her share of the corporation’s real estate taxes
deductible under section 164. Sec. 216(a)(1). The phrase “taxes
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011