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determination of a $252 alternative minimum tax. Petitioners do
not contest the mathematical correctness of respondent’s
computations.
Discussion
1. The Parties’ Contentions
Respondent maintains that the Sixteenth Amendment to the
United States Constitution “permits Congress to impose ‘taxes on
incomes, from whatever source derived’.” Further, “Congress,
within its sole discretion, may determine the extent to which, if
at all, taxpayers may claim deductions from income they are
required to report.” Finally, respondent contends--
Petitioners have not shown, however, as they
must, that sections 165(f) and 1211(b)
violate constitutional guarantees of due
process and equal protection or breach the
authority granted to the Congress pursuant to
the Sixteenth Amendment to the Constitution.
Petitioners respond that respondent’s references to
deductions miss the point that “a capital loss is an income item.
A capital loss is not a deductible expense item.” By disallowing
that part of the loss that exceeds $3,000, petitioners contend,
respondent is taxing petitioners on “income that does not exist.
Petitioners believe that Section 1211(b) violates the power
granted Congress in the Sixteenth Amendment, and if the Court
agrees, it should rule accordingly.”
2. Summary and Conclusion
The Constitution does not require all income items to be
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