Robert J. Merlo - Page 12

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          However, the capital loss limitations of sections 1211(b) and               
          1212(b) limit petitioner’s ability to recognize the regular                 
          capital loss.9                                                              
          Petitioner’s adjusted AMT basis in the shares of Exodus                     
          stock was $1,075,289, resulting in realized AMT capital loss of             
          $1,075,289.  Petitioner seeks to carry back his AMT capital loss            
          to reduce his AMTI in 2000.  Petitioner argues that the capital             
          loss limitations of sections 1211 and 1212 do not apply to his              
          AMT capital loss for purposes of calculating his AMTI.                      
               This Court has never addressed whether the capital loss                
          limitations of sections 1211 and 1212 apply for purposes of                 
          calculating a taxpayer’s AMTI.  However, section 1.55-1(a),                 
          Income Tax Regs., states:                                                   
               Except as otherwise provided by statute, regulations,                  
               or other published guidance issued by the Commissioner,                
               all Internal Revenue Code provisions that apply in                     
               determining the regular taxable income of a taxpayer                   
               also apply in determining the alternative minimum                      
               taxable income of the taxpayer.                                        
          We find no statute, regulation, or other published guidance that            
          purports to change the treatment of capital losses for AMT                  
          purposes.10  See secs. 55-59 (and accompanying regulations).                

               9  The effect of the capital loss limitations of secs.                 
          1211(b) and 1212(b) for regular tax purposes is not in issue, and           
          thus, is not discussed in detail.                                           
               10  Petitioner argues that because the instructions to line            
          9 of Form 6251 for 2000 do not mention sec. 1211, the                       
          instructions indicate that sec. 1211 does not apply for purposes            
                                                             (continued...)           





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