alternative minimum tax (AMT) investment & finance definition
A federal tax on taxable income as adjusted for specific tax-preference items, such as passive losses from tax shelters and interest paid on certain municipal bonds.
Alternative Minimum Tax (AMT)
Definition: The alternative minimum tax (AMT) is an initiative that adds certain tax preference items back into a person or company's adjusted gross income (AGI).
Alternative Minimum Tax (AMT)
The tax law gives preferential treatment to some kinds of income and allows special deductions and credits for some kinds of expenses.
The alternative minimum tax is not just for high income tax payers. Many middle-income Americans have to pay alternative minimum tax and have their tax credits limited.
ALTERNATIVE MINIMUM TAX (AMT) - Taxation based on an alternative method of calculating federal income tax intended to ensure that taxpayers are not able to avoid paying any federal income tax.
Alternative minimum tax (AMT): a tax system designed to assure that wealthy individuals and organizations pay at least a minimum amount of federal income taxes.
Alternative Minimum Tax - AMT
A tax calculation that adds certain tax preference items back into adjusted gross income. Alternative minimum tax (AMT) uses a separate set of rules to calculate taxable income after allowed deductions.
Alternative minimum tax (AMT): Tax-law provision that ensures that individuals and companies pay some income tax, no matter how many deductions or credits they claim,.
Alternative minimum tax (AMT) A tax designed by the IRS to thwart higher-income individuals, corporations, trusts, and estates from avoiding taxes by claiming a large number of deductions.
Alternative Minimum Tax (AMT)
An alternative way of calculating income under the Internal Revenue Code. Interest on private-activity bonds [other than 501(c)(3) obligations] issued after August 7, 1986, is used for such a calculation.
Alternative minimum tax (AMT)
The alternative minimum tax (AMT) was designed to ensure that all taxpayers pay at least the minimum federal income tax for their income level, no matter how many deductions or credits they claim.
Alternative minimum tax: A tax on certain "preference items," most of which are tax deductions allowed under the normal income tax calculation. Taxpayers pay either the regular tax or the alternative minimum tax, whichever is greater.
Alternative Minimum Tax (AMT)
A federal tax aimed at ensuring that wealthy individuals, estates, trusts, and corporations pay a minimal level income tax.
Alternative minimum tax (AMT):
A federal tax that ensures high-income individuals pay a fair amount of income tax.
The original Alternative Minimum Tax targeted tax shelters used by a few wealthy households. However, the Tax Reform Act of 1986 greatly expanded the AMT to aim at a different set of deductions that most Americans receive.
tax preference item This Item often subjects taxpayers to alternative minimum taxes. tax rate The percentage of an entity's income, goods, services or assets that is paid...
Alternative Minimum Tax (AMT)
Alternative mortgage instruments
Alternative order
American Association of Individual Investors (AAII)
American Depository Receipt (ADR)
American Depository Receipt Fees
American Depository Receipt Ratio ...
These built-in income limitations plus the effect of alternative minimum tax rules make these tools ineffective for current-year planning, but can still have a significant tax effect over a longer period of time.
Interest that you receive on these tax-exempt bonds (except qualified 501(c)(3) bonds and New York Liberty bonds), if issued after August 7, 1986, generally is a "tax preference item" and may be subject to the alternative minimum tax.
In general, interest paid on municipal bonds is exempt from federal income taxes and state and local taxes within the state of issue. However, interest may be subject to the alternative minimum tax (AMT).
bond holders is often exempt from all federal taxes, as well as state or local taxes depending on the state in which the issuer is located, subject to certain restrictions. Bonds issued for certain purposes are subject to the alternative minimum tax.
 See also: Income, Interest, Investment, Bonds, Issue
  
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