-8-
taxpayers there. We do likewise here for the same reasons stated
in Merlo.6 Accord Montgomery v. Commissioner, 127 T.C.
(2006); Spitz v. Commissioner, T.C. Memo. 2006-168.
Alternatively, petitioners argue, they may compute their
2001 AMTI by subtracting from their 2001 taxable income the
$151,461 difference between the $148,461 regular tax capital gain
for 2001 and the $3,000 allowable AMT capital loss for 2001.
According to petitioners, this difference is a net operating loss
negative adjustment that reduces their 2001 taxable income.
While we agree with petitioners that the difference between a
regular tax capital gain or loss and an AMT capital gain or loss
must be taken into account in calculating a taxpayer’s AMTI, we
disagree with petitioners that the difference in this case is a
net operating loss for the same reasons set forth in Merlo v.
Commissioner, supra. Accord Montgomery v. Commissioner, supra;
Spitz v. Commissioner, supra. For the reasons stated below, we
also disagree with petitioners that $151,461 is the difference
that must be taken into account in computing their 2001 AMTI.
In Allen v. Commissioner, supra at 10, we explained that an
individual calculates AMTI by first computing regular taxable
income and then making the necessary alterations to reflect the
6 Petitioners acknowledge in their posttrial brief that this
issue was decided adversely to them in Merlo v. Commissioner, 126
T.C. 205 (2006).
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