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Petitioner is a U.S. citizen who during the subject years
resided in Germany and was employed there as an attorney. During
1997, 1998, 1999, and 2000, his income was derived entirely from
foreign sources, and he did not report an AMT liability as to the
income. For each of the years in issue, he had foreign tax
available for credit, entitling him to foreign tax credits under
section 59(a), and tentative AMT, as follows:
Foreign Tax
Available Sec. 59(a) Tentative
Year for Credit Credit AMT
1997 $75,148 $44,008 $36,627
1998 42,586 27,762 22,026
1999 65,161 34,822 28,324
2000 37,730 17,477 13,193
Petitioner first filed income tax returns for these years in
January 2003.
Discussion
While acknowledging that section 59(a)(2)(A) supports
respondent’s determination in full, petitioner argues that
section 59(a)(2)(A) is inapplicable to this case as it was
superseded by article 23(1). Petitioner urges that this Court
was misguided in Pekar v. Commissioner, 113 T.C. 158, 163 (1999),
and Brooke v. Commissioner, T.C. Memo. 2000-194, affd. 13 Fed.
Appx. 7 (D.C. Cir. 2001), where we held that article 23(1)
harmonizes with the application of section 59(a)(2)(A) because
article 23(1) states that the U.S.-Germany treaty shall apply in
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