- 14 -
sections 56, 57, and 58. Allen v. Commissioner, 118 T.C. 1, 10,
20-21 (2002).
There are no provisions within sections 55 through 58 and
the accompanying regulations excluding capital loss limitations
under sections 1211(b) and 1212(b) from the calculation of an
individual’s AMTI. To the contrary, as explained by the Joint
Committee on Taxation:
For most purposes, the tax base for the new
alternative minimum tax is determined as though the
alternative minimum tax were a separate and independent
income tax system.
In certain instances, the operation of the
alternative minimum tax as a separate and independent
tax system is set forth expressly in the Code. * * *
In other instances, however, where no such express
statement is made, Congress did not intend to imply
that similar adjustments were not necessary. Thus, for
example, for [alternative] minimum tax purposes it was
intended that section 1211 (limiting capital losses) be
computed using [alternative] minimum tax basis * * * .
[Staff of Joint Comm. on Taxation, General Explanation
of the Tax Reform Act of 1986, at 438 (J. Comm. Print
1987).]
Therefore, the capital loss limitations of sections 1211(b) and
1212(b) apply in calculating a taxpayer’s AMTI, and petitioner
may not carry back the excess AMT capital losses recognized in
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011