Danny Holloway and Patti Bain Holloway - Page 8

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               The minimum tax credit and the alternative minimum tax                 
          limitation on business credits are both applicable to this case             
          because, depending on which credit the Holloways are claiming,              
          one or the other will apply.  The section 29 credit (now the                
          section 45K credit) was one of the additional credits included in           
          the minimum tax credit in 2002.  Sec. 53(d)(1)(B)(iii).  If the             
          Holloways’ credit were a section 29 credit, any part of it                  
          greater than the excess of their adjusted regular income tax over           
          their tentative minimum tax would become part of their minimum              
          tax credit.  Id.  If their credit were a section 43 credit, it              
          would be the alternative minimum tax’s limits on business                   
          credits, as described above, that would apply and limit it.                 
               But whether their credit fed into the minimum tax credit or            
          the general business tax credit part of the whole alternative               
          minimum tax scheme, the Holloways would first have to calculate             
          their tentative minimum tax and adjusted regular income tax for             
          the 2002 tax year to determine how much credit is available to              
          them.  It was their failure to do this that caused the                      
          Commissioner’s computers to spit out a math error notice--and the           
          Holloways do not contest the Commissioner’s arithmetic.  They               
          concede that without a special rule that reduces their tentative            
          minimum tax, the Commissioner is correct and they are limited in            
          the amount of credit they can take.  However, they point to three           
          sections of the Code which they believe apply to their situation:           






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