Review your incentive stock option (“ISO”) plans prior to year-end. A poorly timed exercise of ISOs can be very costly since the spread between the fair market value of the stock and your exercise price is a tax preference item for AMT purposes. If you are in the AMT, you will have...
Preference items Tax breaks allowed under the regular income tax but not under the Alternative Minimum Tax, including the deduction of state and local taxes and interest on home equity loans. One that is becoming more and more important to more and more taxpayers is the "spread" between the e...
The alternative minimum tax, also known as AMT, was created and is administered by the Internal Revenue Service of the United States. While at one time the inclusion of a tax preference item only impacted a small number of taxpayers within the USA, the practice has become more commonplace. ...
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However, the author suggests that the decision of the Tax Court that percentage depletion preference computations under Section 57(a)(1) must use the "adjusted basis of the property" rather than "adjusted basis of the property for computing a deduction for depletion" are unwarranted.Swiech...
The Alternative Minimum Tax (AMT) was designed to keep wealthy taxpayers from using loopholes to avoid paying taxes. But because it was not automatically updated for inflation, more middle-class taxpayers were getting hit with the AMT each year. Congress
Alternative Minimum Tax (AMT)-- This parallel tax primarily affects high-income taxpayers who shelter some of their income from tax through certain tax preference items or deductions. It is often referred to in tax publications as AMT and, if your income meets the limit, you have to recalculat...
Because the 1986 tax reform taxed capital gains at the same rate as ordinary income, capital gains were eliminated as an AMT preference item. When the differential between tax rates on capital gain... AA Samwick - 《Nber Chapters》 被引...
Acronym for Adjusted Gross Income. (See “Adjusted Gross Income”) Alternative Minimum Tax (AMT) A tax liability computation that adds back into adjusted gross income certain deductions, credits, and other tax preference items that are allowed for calculating regular income tax liability. Its purpose...
The AMT recalculates income tax after adding certaintax preference itemsback into adjusted gross income. It uses a separate set of rules to calculate taxable income after allowed deductions. Preferential deductions are added back into the taxpayer's income to calculate their alternative minimum taxable...