- 6 - resulting in petitioners’ AMT liability in that amount. Unless application of the AMT-foreign-tax-credit limitation of section 59(a)(2)(A) would violate the U.S.-Czech treaty, petitioners are liable for the $2,136 AMT. In cases involving other treaties with operative language similar to the language of the U.S.-Czech treaty involved herein, courts have held that the section 59(a)(2)(A) AMT-foreign-tax- credit limitation does not violate general treaty provisions intended to avoid double taxation. More specifically, courts have interpreted the same general treaty language at issue herein (namely, “In accordance with the provisions and subject to the limitations of the law of the United States”) to allow application of the section 59(a)(2)(A) AMT-foreign-tax-credit limitation. See Kappus v. Commissioner, 337 F.3d 1053, 1054 (D.C. Cir. 2003) (relating to U.S.-Canada treaty), affg. T.C. Memo. 2002-36; Pekar v. Commissioner, 113 T.C. 158, 160 (1999) (relating to U.S.-Germany treaty); Brooke v. Commissioner, T.C. Memo. 2000-194, affd. per curiam 13 Fed. Appx. 7 (D.C. Cir. 2001). Interpreting the same language in the context of article 23(1) in the U.S.-Germany treaty,2 in Pekar v. Commissioner, supra at 163, we upheld the AMT-foreign-tax-credit limitation of 2 Convention for the Avoidance of Double Taxation, Aug. 28, 1989, U.S.-Germany, 30 ILM 1778, 1779.Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011