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Form 1040, line 39 1$3,790
plus: adjustments and preferences
(1) medical/dental expenses 21,079
(2) State/local income taxes 603
(3) miscellaneous deductions 355,303
less: refund of taxes -1,210
alternative minimum taxable income 59,565
less: exemption amount -49,000
taxable excess 10,565
applicable AMT rate 26%
tentative minimum tax 2,747
less: regular tax4 0
AMT 2,747
1 We note that petitioners reported $3,791 on
line 39; the difference is of no significance. Line 39
of Form 1040 represents adjusted gross income less
itemized deductions. Line 39 precedes the line on
which personal exemptions are claimed. The AMT
computation effectively serves to disallow all personal
exemptions.
2 Medical expenses in excess of 7.5 percent, but
less than 10 percent, of adjusted gross income as
reported by petitioners on their return.
3 We note that petitioners reported miscellaneous
deductions of $55,302; the difference is of no
significance.
4 As reported by petitioners on line 55 of their
return.
Petitioners filed with the Court a timely amended petition
for redetermination. Paragraph 4 of the amended petition states
in relevant part:
I received a letter from IRS, Fresno, stating AMT tax
owed and refund pending. Explanation forward to IRS,
Fresno, why AMT tax not owed. Full refund and
explanation excepted [sic] a few wks later by IRS,
Fresno. A yr later 2004, IRS, PA, stating that AMT tax
owed again for same yr 2002. We are contesting in US
Tax Court, that full refund issued, paperwork excepted
[sic], and case 2002 was closed. IRS, PA, is not
accepting our explanations and findings. This matter
is completely wrong in money owed.
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Last modified: May 25, 2011