- 13 -
Therefore, we hold that the capital loss limitations of sections
1211 and 1212 apply in calculating a taxpayer’s AMTI. See sec.
1.55-1(a), Income Tax Regs.; see also Allen v. Commissioner, 118
T.C. at 8 (holding that the wage-expense limitation of section
280C(a) applies to the calculation of AMTI where nothing in the
sections relating to the wage-expense limitation or in the AMT
provisions indicates otherwise). Accordingly, we find that
petitioner cannot carry back his AMT capital loss realized in
2001 to reduce his AMTI in 2000.
C. Net Operating Losses and Alternative Tax Net Operating
Losses
In an attempt to carry back his AMT capital loss, petitioner
argues that the AMT capital loss entitles him to an ATNOL
deduction under section 56.
Generally, a taxpayer may carry back a net operating loss
(NOL) to the 2 taxable years preceding the loss, then forward to
each of the 20 taxable years following the loss.11 Sec.
10(...continued)
of calculating petitioner’s AMTI. We do not need to consider
whether petitioner’s interpretation of the instructions is
correct. It is settled law that taxpayers cannot rely on
informal IRS instructions to justify a reporting position that is
otherwise inconsistent with the controlling statutory provisions.
Johnson v. Commissioner, 620 F.2d 153, 155 (7th Cir. 1980), affg.
T.C. Memo. 1978-426; Graham v. Commissioner, T.C. Memo. 1995-114;
Jones v. Commissioner, T.C. Memo. 1993-358.
11 In the case of NOLs incurred in 2001 or 2002, sec.
172(b)(1)(H) creates a 5-year carryback. Petitioner argues that
he is entitled to relief from the 5-year carryback. However,
(continued...)
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