[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.57-0]

[Page 501-502]
 
                       TITLE 26--INTERNAL REVENUE
 
     CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY
 
PART 1--INCOME TAXES--Table of Contents
 
Sec. 1.57-0  Scope.

    For purposes of the minimum tax for tax preferences (subtitle A, 
chapter I, part VI), the items of tax preference are:
    (a) Excess investment interest,
    (b) The excess of accelerated depreciation on section 1250 property 
over straight line depreciation,
    (c) The excess of accelerated depreciation on section 1245 property 
subject to a net lease over straight line depreciation,

[[Page 502]]

    (d) The excess of the amortization deduction for certified pollution 
control facilities over the depreciation otherwise allowable,
    (e) The excess of the amortization deduction for railroad rolling 
stock over the depreciation otherwise allowable,
    (f) The excess of the fair market value of a share of stock received 
pursuant to a qualified or restricted stock option over the exercise 
price,
    (g) The excess of the addition to the reserve for losses on bad 
debts of financial institutions over the amount which have been 
allowable based on actual experience,
    (h) The excess of the percentage depletion deduction over the 
adjusted basis of the property, and
    (i) The capital gains deduction allowable under section 1202 or an 
equivalent amount in the case of corporations.

Accelerated depreciation on section 1245 property subject to a net lease 
and excess investment interest are not items of tax preference in the 
case of a corporation, other than a personal holding company (as defined 
in section 542) and an electing small business corporation (as defined 
in section 1371(b)). In addition, excess investment interest is an item 
of tax preference only for taxable years beginning before January 1, 
1972. Rules for the determination of the items of tax preference are 
contained in Secs. 1.57-1 through 1.57-5. Generally, in the case of a 
nonresident alien or foreign corporation, the application of Secs. 1.57-
1 through 1.57-5 will be limited to cases in which the taxpayer has 
income effectively connected with the conduct of a trade or business 
within the United States. Special rules for the treatment of items of 
tax preference in the case of certain entities and the treatment of 
items of tax preference relating to income from sources outside the 
United States are provided in section 58 and in Secs. 1.58-1 through 
1.58-8.

[T.D. 7564, 43 FR 40470, Sept. 12, 1978]