Tax preference item
Items that must be included when calculating the alternative minimum tax.
Tax preparation services
Firms that prepare tax returns for a fee.
3. Tax Preference Items were added to the old add-on minimum tax to strengthen the Alternative Minimum Tax.
4. The floor for medical expense deductions was raised from 3% to 5% of Adjusted Gross Income (AGI).
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...
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.
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).
For taxpayers subject to the alternative minimum tax, certain tax preference items, including interest on some private activity bonds, ...
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.
A tax designed to prevent wealthy investors from using tax shelters to avoid other (income) taxes. The calculation of the AMT takes into account tax preference items.
American Depository Receipts (ADR) ...
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: ...
Alternative Minimum Tax (AMT)
A tax aimed at preventing affluent investors from using tax shelters to evade other types of taxes such as income tax. Computation of the AMT takes into consideration tax preference items.
The more common adjustments and tax preference items include: personal exemptions, standard or certain itemized deductions, state and local tax refunds, accelerated depreciation of certain property, ...
A federal tax aimed at ensuring that wealthy individuals, estates, trusts, and corporations pay a minimal level income tax. For individuals, the AMT is calculated by adding adjusted gross income to tax preference items.
 See also: Income, Investment, Market, Alternative minimum tax, Account
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