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described in” section 164(a)(1) clearly applies to real estate
taxes paid by a taxpayer and deductible under section 164.
If Congress had intended the reference in section
56(b)(1)(A)(ii) to “taxes described in” section 164(a) not to
apply to real estate taxes passed through to tenant-stockholders
under section 216, Congress could have said “taxes deducted
under” paragraph (1), (2), or (3) of section 164(a). Instead,
section 56(b)(1)(A)(ii) refers to “taxes described in” section
164(a).
Petitioners contend that Congress used the phrase “taxes
described in paragraph (1), (2), or (3) of section 164(a)” in
section 56(b)(1)(A)(ii) to deny deduction of real estate,
personal property, and income taxes in computing AMTI while
allowing deduction of section 59A environmental taxes and
generation-skipping transfer taxes in computing AMTI. Whether or
not section 56(b)(1)(A)(ii) has that effect, we do not agree that
that reading precludes respondent’s claim here; i.e., that a
deduction under section 216(a)(1) based on taxes paid by a
cooperative housing corporation is a deduction for taxes
“described in” section 164(a).
Petitioners also argue that if deductions under section 164
include real estate taxes paid by a cooperative housing
corporation and deducted by a tenant-stockholder under section
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Last modified: May 25, 2011