John Joseph Vax and Natalie Vax - Page 6

                                        - 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