Re: RICHARD A. MACDONALD CPA/EA: BELIEVES THAT REALITY IS AN ILLUSION THAT CAN BE OVERCOME WITH PURE UNADULTERATED B.S.


Richard Macdonald wrote:
Unrelated ad "homonym" noted as a sign of crumbling argument.

Isn't an ad "homonym" attack what happens when a bunch of nymphomaniac
bikers go into a gay bar.

SECTION 56. ADJUSTMENTS IN COMPUTING
ALTERNATIVE MINIMUM TAXABLE INCOME
[ Part (a) omitted]
(b) ADJUSTMENTS APPLICABLE TO INDIVIDUALS
In determining the amount of the alternative minimum taxable income
of any taxpayer (other than a corporation), the following treatment shall
apply (in lieu of the treatment applicable for purposes of computing the
regular tax):
(1) LIMITATION ON DEDUCTIONS
(A) IN GENERAL
No deduction shall be allowed--
(i) for any miscellaneous itemized deduction (as defined in
section 67(b)), or
(ii) for any taxes described in paragraph (1), (2), or (3)
of section 164(a).
Clause (ii) shall not apply to any amount allowable in computing
adjusted gross income.
(B) MEDICAL EXPENSES . . .
(C) INTEREST . . .
(D) TREATMENT OF CERTAIN RECOVERIES
No recovery of any tax to which subparagraph (A)(ii) applied
shall be included in gross income for purposes of determining
alternative minimum taxable income.
(E) STANDARD DEDUCTION AND DEDUCTION FOR
PERSONAL EXEMPTIONS NOT ALLOWED
The standard deduction under section 63(c), the deduction for
personal exemptions under section 151, and the deduction under
section 642(b) shall not be allowed.

Since none of the above cited parts of Section 56 say anything
about having paid AMT, SPECIFICALLY where do you come
up with support for your assertion.

You obviously believe that reality is an illusion that can be overcome
with pure unadulterated B.S.

56(b) "the following treatment shall apply (in lieu of the treatment
applicable for purposes of computing the regular tax):

You obviously cannot understand English and what this statement means.

in lieu of
Definition
Instead of, in place of.
http://www.investorwords.com/2478/in_lieu_of.html

Noun 1. lieu - the function or position properly or
customarily occupied or served by another; "can
you go in my stead?"; "took his place"; "in lieu of"
http://www.thefreedictionary.com/lieu

To apply in lieu means that the rules for AMTI in Section
56 act in the place of the rules for regular tax,
WHEN THE RECOVEY IS FROM AN OVERPAYMENT IN A YEAR THAT THE AMT WAS
PAID.
Ergo since
56(b)(1)(D) has a rule for how refunds are handles,
Section 111 no longer applies for AMTI purposes.

If Congressional intent was to exclude refunds of taxes that were
deductible and provided a tax benefit when the regular tax was paid,
section 56(b)(1)(D) would have state so thusly,

(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 IT SAYS, SO REFUNDS OF TAXES DEDUCTIBLE UNDER
SECTION 164(A) AND WHICH PROVIDED A TAX BENEFIT WHEN THE REGULAR TAX
WAS PAID ARE INCLUDED IN AMTI.

When Congress passes the legislation to strip government FRAUDSTERS of
their pensions, some folks at IRS/Treasury will get real smart real
fast or get stripped. Let's just say that they would be "incentivized"
by the legislation to get it right.

Cheers,

WDK

.

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