George L. Stockwell and Delia Stockwell v. Commissioner of Internal Revenue

POLITZ, Circuit Judge:

This appeal poses the question whether the minimum tax imposed on individual tax preference items under former IRC § 56, 26 U.S.C. § 56 (now IRC § 55, 26 U.S.C. § 55), is subject to the income averaging provision of IRC §§ 1301-05, 26 U.S.C. §§ 1301-05. The Commissioner determined that the averaging provisions did not apply; the Tax Court agreed. We affirm.

Facts

George and Delia Stockwell purchased shares in the Wynnewood Bank in Texas during 1975 and 1976 at a total cost of $119,668.12. In 1978 they sold the stock for $189,040.50, realizing long-term capital gains of…