- alternative minimum tax
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alternative minimum tax n: a federal tax that prevents a person or entity (as a corporation) with taxable income from avoiding tax liability and that imposes tax liability in the amount of the excess of the tentative minimum tax over regular tax liability see also tax preference item
Merriam-Webster’s Dictionary of Law. Merriam-Webster. 1996.
- alternative minimum tax
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(AMT)An IRS system created to ensure that high-income individuals, corporations, trusts, and estates pay a minimum amount of tax, regardless of deductions, credits, or exemptions. To arrive at AMT, certain items (such as passive losses from tax shelters) are added back to adjusted gross income. If the alternative minimum tax is higher than the regular tax liability for the year, then you must make up the difference by paying the alternative minimum tax.Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & FinancesCategory: Business Cash Flow Problems & BankruptcyCategory: Business, LLCs & Corporations → Business Tax & DeductionsCategory: Personal Finance & Retirement → Money & Taxes for RetireesCategory: Personal Finance & Retirement → Taxes → Tax Audits
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.