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a taxpayer's “alternative minimum taxable income” over an
exemption amount of $49,000. See sec. 55(b)(1)(A)(i)(I), (b)(2),
(d)(1)(A)(i).
Section 55(b)(2) defines the term “alternative minimum
taxable income”. As relevant herein, the term “alternative
minimum taxable income” means the taxpayer's taxable income for
the taxable year determined with the adjustments provided in
section 56 and increased by the amount of items of tax preference
described in section 57. As previously stated, petitioners had
no items of tax preference in 2002. Accordingly, alternative
minimum taxable income means petitioners’ taxable income
determined with the adjustments provided in section 56.
Petitioners’ taxable income for 2002 was $9,631, which is
the amount that petitioners reported on line 41 of their Form
1040.4
As relevant herein, the adjustments provided in section
56(b) are threefold. First, section 56(b)(1)(A)(ii) provides
that in computing alternative minimum taxable income, no
deduction shall be allowed for any State and local income taxes
or real estate taxes. Second, section 56(b)(1)(B) provides that
medical and dental expenses shall be deductible in computing
alternative minimum taxable income only to the extent that such
4 Taxable income is defined by sec. 63. As relevant
herein, taxable income means adjusted gross income less (1)
Schedule A itemized deductions and (2) personal exemptions.
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Last modified: May 25, 2011