-2-
difference between the $148,461 regular tax capital
gain and $3,000 of their 2001 AMT capital loss.
Held: Pursuant to secs. 56(b)(3) and 1211(b),
I.R.C., Ps’ 2001 AMTI is calculated by computing their
2001 AMT capital loss by using the AMT adjusted basis
of the stock related to the ISO and the $153,625 of
capital losses on the other sales, and adjusting Ps’
2001 taxable income by the difference between the 2001
regular tax capital loss included in the calculation of
that taxable income and Ps’ 2001 AMT capital loss up to
a maximum of $3,000. Because Ps included a $3,000
capital loss in computing their 2001 taxable income and
are allowed the same amount as a 2001 AMT capital loss,
Ps’ adjustment to their 2001 taxable income is zero.
Don Paul Badgley, Brian G. Isaacson, and Duncan C. Turner,
for petitioners.
Julie L. Payne, for respondent.
OPINION
LARO, Judge: This case is before the Court for decision
without trial. See Rule 122.1 Petitioners petitioned the Court
to redetermine respondent’s determination of a $155,305
deficiency in their 2001 Federal income tax. The deficiency
stems from respondent’s disallowance of an adjustment that
petitioners made in calculating their 2001 alternative minimum
taxable income (AMTI). We decide whether the calculation of
petitioners’ 2001 AMTI includes an adjustment for the difference
1 Rule references are to the Tax Court Rules of Practice and
Procedure. Section references are to the applicable versions of
the Internal Revenue Code. Dollar amounts are rounded.
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