whichever is the smaller.
Example.
Year 1956 | ||
Tax on $15,000 (taxable income including section 666 amounts) | $4,730 | |
Tax on $5,000 (taxable income excluding section 666 amounts) | 1,100 | |
Tax attributable to section 666 amounts | 3,630 | |
Year 1955 | ||
Tax on $16,000 (taxable income including section 666 amounts) | $5,200 | |
Tax on $10,000 (taxable income excluding section 666 amounts) | 2,640 | |
Tax attributable to section 666 amounts | 2,560 | |
Year 1954 | ||
Tax on $14,000 (taxable income including section 666 amounts) | $4,260 | |
Tax on $10,000 (taxable income excluding section 666 amounts) | 2,640 | |
Tax attributable to section 666 amounts | 1,620 |
26 C.F.R. §1.668(a)-4