Re: 2005 AMT Change Question
- From: KEBSCHULLW@xxxxxxx
- Date: 13 Jan 2006 09:06:20 -0800
Richard Macdonald wrote:
> <KEBSCHULLW@xxxxxxx> wrote in message
> > Richard Macdonald wrote:
> >> <KEBSCHULLW@xxxxxxx> wrote in message
> >> news:1137102622.203875.61060@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> >> >
> >> > Now here is the really BAD NEWS!. For years after 1986 the IRS
> >> > instruction for Line 7 on Form 6251 is FRAUDULENT! The only refunds
> >> > that are entered on Lines 10 and 21 are those from years when the
> >> > regular tax was paid. Section 56(b)(1)(D) of the IRC does not provide
> >> > for the exclusion of refunds from AMTI that were deductible under
> >> > section 164(a) of the IRC when ther regular tax was paid.
> >> He still does not realize tnat in years when regular tax is greater that
> >> AMT,
> >> that AMT WAS PAID and the taxes were not allowed for the AMT and
> >> are thus not includable in future years for AMTI.
> > Lil Richard "Tax'em Double or Nothing" Macdonald:
> > Let me give you a little clue.
> > Since section 56(A)(ii) of the IRC APPLIES IN LIEU of the treatment
> > applicable for purposes of computing the regular tax, section
> > 56(b)(1)(D) only applies to the refunds of taxes that were not
> > deductible in the years that the AMT was PAID. Like what part of "IN
> > LIEU OF" don't you and your buddies at IRS understand?
> And in any year that regular tax exceeds AMT, the AMT IS PAID.
Publication 525 uses TOTAL TAX to determine if there was a tax benefit
when the AMT was paid.
TOTAL TAX = TAX + ALTERNATIVE MINIMUM TAX + .....
It is right there on Page 2 of Form 1040.
If Congress intended that all refunds of deductible taxes under
section 164(a) be excluded from alternative minimum taxable income then
section 56(b)(1)(D) would have read as follows:
(D) Treatment of certain recoveries
No recovery of any tax to which paragraphs (1), (2), or (3) of section
164(a) applied shall be included in gross income for purposes of
determining alternative minimum taxable income.
But that ain't what section 56(b)(1)(D) says. If it did the clueless
clowns at IRS would, no doubt, include refunds for taxes from years
when the "AMT" was paid, i.e. A(ii) applied in lieu of section 164(a)
in the calculation of AMTI. Then the refund of a tax that was not
allowed as a deduction in the prior year would be tax.
- Prev by Date: Re: 2005 AMT Change Question
- Next by Date: Re: 2005 AMT Change Question
- Previous by thread: Re: 2005 AMT Change Question
- Next by thread: Re: 2005 AMT Change Question