Sentences with phrase «tax preference item»

At exercise, the difference between the grant price and the exercise price is a tax preference item for calculating the alternative minimum tax.

An alternative minimum tax (AMT) recalculates income tax after adding certain tax preference items back into adjusted gross income.

An alternative minimum tax (AMT) recalculates income tax after adding certain tax preference items back into adjusted gross income.

You may have to pay the AMT if your taxable income for regular tax purposes, combined with certain adjustment and tax preference items (including interest on certain private activity bonds), is more than the following exemption amounts below:

The purpose of the alternative minimum tax (AMT) is to restrict the tax benefits derived from various tax preference items, such as approved tax shelters, capital gains, investment tax credits and certain losses.

Not exact matches

It applied to certain income items («preferences») that were taxed lightly or not at all under the regular income tax.

After calculating their regular income tax, many middle - and upper - income taxpayers must add a number of AMT «preference items» to their taxable income, subtract an AMT exemption amount, and recalculate their tax using the AMT tax rate structure.

AMT preference items include the deduction for state and local taxes (62 percent of all preferences in 2012 according to Treasury data), personal exemptions (21 percent), the deduction for miscellaneous business expenses (9.5 percent), and the standard deduction (0.7 percent).

The largest preference item was the portion of capital gains excluded from the regular income tax.

The main preference items, including capital gains, moved from the add - on tax to the AMT.

The most common «preference» items, however, are for state and local tax deductions, personal exemptions, and miscellaneous itemized deductions — not items normally thought of as preferences or shelters.

Alternative minimum tax: A tax on certain «preference items,» most of which are tax deductions allowed under the normal income tax calculation.

It is designed to prevent taxpayers — particularly those with high incomes — from using certain deductions and credits (called tax - preference items) to pay little or no taxes.

Some portion of tax - exempt fund dividends may be derived from private activity bonds, which are a tax - preference item for the AMT.

After calculating their regular income tax, many middle - and upper - income taxpayers must add a number of AMT «preference items» to their taxable income, subtract an AMT exemption amount, and recalculate their tax using the AMT tax rate structure.

The main preference items, including capital gains, moved from the add - on tax to the AMT.

AMT preference items include the deduction for state and local taxes (62 percent of all preferences in 2012 according to Treasury data), personal exemptions (21 percent), the deduction for miscellaneous business expenses (9.5 percent), and the standard deduction (0.7 percent).

Using the IRS definition: You may have to pay the AMT if your taxable income for regular tax purposes plus any adjustments and preference items that apply to you are more than the AMT exemption amount.