Treatment of Investment Expenses Under the Individual Alternative Minimum Tax Jcx-68-89
Treatment of Investment Expenses Under the Individual Alternative Minimum Tax Jcx-68-89
United States. Congress. Joint Committee On Taxation
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In computing alternative minimum taxable income, no deduction is allowed for miscellaneous itemized deductions. Investment expenses deductible under section 212 are generally treated as a miscellaneous itemized deduction and thus are not deductible in computing the minimum tax. Under the regular tax, miscellaneous itemized deductions (including investment expenses) are deductible only to the extent they exceed two percent of the individual's adjusted gross income. Explanation of Proposal Under t...he proposal, an individual would be allowed to deduct as an itemized deduction in computing the minimum tax, investment expenses which are deductible in computing the regular tax to the extent they do not exceed the individual's net investment income.^ Effective Date The proposal would apply to taxable years beginning after December 31, 1989. This issue was added to the list of items scheduled for a hearing on October 26, 1989, before the Ways and Means Subcommittee on Select Revenue Measures. See JCX-66-89, October 20, 1989, for a description of the other items scheduled for the October 26 Subcommittee hearing.
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