- 10 - the alternative minimum tax. Unfortunately for the Holloways, this section wasn’t added to the Code in its present form until 2004, and applies only to tax years ending after October 22, 2004.8 Even if it were effective for the 2002 tax year, it applies to only certain tax credits, and neither the section 29 nor 43 credit is among them. Sec. 38(c)(4)(B) (2006). Section 55(e)(1). This section eliminates alternative minimum tax liability for corporations with gross receipts under $7.5 million. But it applies only to corporations subject to taxation. Holloway, Inc. is an S Corporation, and so doesn’t pay taxes itself. Its taxable income is also generally calculated as if it were an individual, not a regular corporation. Sec. 1363(a) and (b). This special rule just doesn’t apply to it. We therefore hold that the Commissioner was correct in allowing the Holloways to take only a portion of their credit, and so Decision will be entered for respondent. 8 American Jobs Creation Act of 2004, Pub. L. 108-357, sec. 711(a), (c), 118 Stat. 1418, 1557-1558.Page: Previous 1 2 3 4 5 6 7 8 9 10
Last modified: May 25, 2011