Alternative Minimum Tax definition: Copy, customize, and use instantly
Introduction
The term "Alternative Minimum Tax" refers to a minimum tax rate that taxpayers must pay if their calculated tax liability falls below a prescribed threshold. It ensures that taxpayers with substantial income but significant deductions still pay a minimum amount of taxes.
Below are various examples of how "Alternative Minimum Tax" can be defined in different contexts. Copy the one that fits your needs, customize it, and use it in your contract.
Definition of "Alternative Minimum Tax" in individual taxation
This definition ties "Alternative Minimum Tax" to individual taxation, specifying its application for individuals with high income who take large deductions.
"Alternative Minimum Tax" means the minimum tax amount that an individual taxpayer must pay, calculated based on an alternative set of rules that ensure high-income taxpayers pay at least a minimal amount of tax despite deductions and exemptions.
Definition of "Alternative Minimum Tax" in corporate taxation
This definition connects "Alternative Minimum Tax" to corporate taxation, outlining how it applies to corporations with significant deductions or credits.
"Alternative Minimum Tax" refers to the tax liability that a corporation is required to pay, calculated by an alternative method if its regular tax liability, after credits and deductions, falls below a specified minimum threshold.
Definition of "Alternative Minimum Tax" in tax planning
This definition links "Alternative Minimum Tax" to tax planning, where it is relevant for ensuring that taxpayers account for the minimum tax requirements in their strategies.
"Alternative Minimum Tax" means a tax that is calculated using an alternative set of rules designed to prevent high-income individuals or corporations from paying too little tax due to deductions and exemptions.
Definition of "Alternative Minimum Tax" in income tax law
This definition applies "Alternative Minimum Tax" to income tax law, where it represents a safeguard against tax avoidance strategies.
"Alternative Minimum Tax" refers to a supplemental tax applied to taxpayers who benefit from large deductions or credits, ensuring that their tax liability reaches a minimum level set by tax law.
Definition of "Alternative Minimum Tax" in the U.S. tax system
This definition ties "Alternative Minimum Tax" specifically to the U.S. tax system, highlighting its relevance in American federal tax law.
"Alternative Minimum Tax" means the minimum amount of tax an individual or corporation must pay under U.S. federal tax law, calculated to ensure that they do not avoid taxes through deductions or exemptions.
Definition of "Alternative Minimum Tax" in estate planning
This definition connects "Alternative Minimum Tax" to estate planning, where it helps to determine tax implications for high-net-worth estates.
"Alternative Minimum Tax" refers to the minimum tax paid by an estate or trust under specific conditions, where deductions or exemptions would otherwise result in a significantly reduced tax liability.
Definition of "Alternative Minimum Tax" in tax compliance
This definition links "Alternative Minimum Tax" to tax compliance, ensuring that taxpayers fulfill the minimum tax requirements.
"Alternative Minimum Tax" means the tax amount calculated under an alternative method, designed to ensure compliance with the minimum tax obligations for individuals and corporations that benefit from tax avoidance strategies.
Definition of "Alternative Minimum Tax" in tax relief programs
This definition applies "Alternative Minimum Tax" to tax relief programs, where it specifies the impact of relief on the minimum tax calculation.
"Alternative Minimum Tax" refers to the minimum tax imposed after applying tax relief programs, ensuring that even after exemptions or deductions, a taxpayer pays at least the prescribed minimum tax.
Definition of "Alternative Minimum Tax" in investment planning
This definition ties "Alternative Minimum Tax" to investment planning, where it may influence strategies for tax-efficient investments.
"Alternative Minimum Tax" refers to the tax threshold that affects investors, as certain investments or deductions may trigger the application of the alternative minimum tax rules.
Definition of "Alternative Minimum Tax" in tax audits
This definition connects "Alternative Minimum Tax" to tax audits, where it is considered during the examination of a taxpayer’s financials.
"Alternative Minimum Tax" means the tax amount determined during an audit of tax filings, where the tax authority ensures that the taxpayer's deductions and exemptions do not result in a liability below the minimum required by law.
Definition of "Alternative Minimum Tax" in tax reporting
This definition links "Alternative Minimum Tax" to tax reporting, where it must be calculated and reported on tax returns.
"Alternative Minimum Tax" refers to the tax calculated under a separate set of rules, which must be reported by taxpayers on their tax returns if applicable, ensuring that the taxpayer meets the minimum tax liability.
Definition of "Alternative Minimum Tax" in foreign income taxation
This definition applies "Alternative Minimum Tax" to foreign income taxation, where it affects taxpayers with international earnings.
"Alternative Minimum Tax" refers to the minimum tax liability for U.S. taxpayers with foreign income, calculated to ensure that they meet the tax obligations even when claiming deductions or exemptions related to foreign earnings.
Definition of "Alternative Minimum Tax" in charitable contributions
This definition ties "Alternative Minimum Tax" to charitable contributions, where the tax treatment of donations may influence the minimum tax calculation.
"Alternative Minimum Tax" means the minimum tax liability that remains after considering charitable contributions, which may be treated differently under the alternative tax rules compared to the regular tax system.
Definition of "Alternative Minimum Tax" in capital gains taxation
This definition connects "Alternative Minimum Tax" to capital gains taxation, where certain capital gains may be subject to the alternative minimum tax.
"Alternative Minimum Tax" refers to the tax amount applied to capital gains income, ensuring that high-income individuals or corporations with significant capital gains still meet a minimum tax liability, regardless of deductions or credits.
Definition of "Alternative Minimum Tax" in real estate tax planning
This definition links "Alternative Minimum Tax" to real estate tax planning, where it affects individuals or corporations investing in property.
"Alternative Minimum Tax" refers to the minimum tax that applies to real estate transactions and investment-related deductions, ensuring that taxpayers with substantial property holdings pay a minimum tax amount.
Definition of "Alternative Minimum Tax" in trust taxation
This definition applies "Alternative Minimum Tax" to trust taxation, describing its impact on trusts and their tax obligations.
"Alternative Minimum Tax" means the minimum tax liability calculated for a trust, ensuring that high-income trusts pay the prescribed minimum tax despite deductions and distributions.
Definition of "Alternative Minimum Tax" in dividend taxation
This definition ties "Alternative Minimum Tax" to dividend taxation, where it applies to shareholders receiving significant dividends.
"Alternative Minimum Tax" refers to the minimum tax that applies to shareholders, ensuring that they are taxed at a minimum rate on dividend income, even if substantial deductions or credits are claimed.
Definition of "Alternative Minimum Tax" in employee stock options
This definition connects "Alternative Minimum Tax" to employee stock options, where it applies to executives or employees who exercise stock options.
"Alternative Minimum Tax" refers to the minimum tax liability that may be imposed on an employee who exercises stock options, ensuring that they meet a minimum tax requirement despite potential deductions or credits.
Definition of "Alternative Minimum Tax" in passive income taxation
This definition links "Alternative Minimum Tax" to passive income taxation, specifying how it affects passive income earners.
"Alternative Minimum Tax" means the minimum tax applied to passive income, ensuring that individuals or corporations with significant passive income pay a minimal tax amount, even after accounting for losses or deductions.
Definition of "Alternative Minimum Tax" in the calculation of credits
This definition applies "Alternative Minimum Tax" to the calculation of credits, where it ensures that credits do not fully offset tax liabilities.
"Alternative Minimum Tax" refers to the tax that cannot be reduced below a specified minimum threshold, even if a taxpayer is eligible for substantial tax credits or deductions.
Definition of "Alternative Minimum Tax" in net operating loss carryforwards
This definition ties "Alternative Minimum Tax" to net operating loss carryforwards, explaining how they may affect the calculation of minimum tax.
"Alternative Minimum Tax" refers to the tax applied after considering a taxpayer's net operating loss carryforwards, which ensures that any losses do not reduce the tax liability below the minimum tax threshold.
Definition of "Alternative Minimum Tax" in small business taxation
This definition connects "Alternative Minimum Tax" to small business taxation, outlining how small businesses are subject to it despite deductions.
"Alternative Minimum Tax" means the minimum tax that small businesses must pay, ensuring they meet a tax threshold even if they take advantage of available business deductions or credits.
Definition of "Alternative Minimum Tax" in international tax rules
This definition applies "Alternative Minimum Tax" to international tax rules, specifying its relevance to U.S. taxpayers with foreign income.
"Alternative Minimum Tax" refers to the tax applied to U.S. taxpayers with foreign income, ensuring they pay at least the minimum tax amount even if they claim foreign tax credits or deductions.
Definition of "Alternative Minimum Tax" in investment income
This definition links "Alternative Minimum Tax" to investment income, specifying how it affects investors with significant earnings.
"Alternative Minimum Tax" refers to the tax that applies to investors, ensuring that those with substantial investment income pay at least a minimum tax, even if their deductions reduce their tax liability.
Definition of "Alternative Minimum Tax" in personal exemptions
This definition connects "Alternative Minimum Tax" to personal exemptions, detailing how exemptions affect the minimum tax liability.
"Alternative Minimum Tax" means the tax that remains after applying personal exemptions, ensuring that a taxpayer’s liability does not fall below a specified minimum threshold.
Definition of "Alternative Minimum Tax" in joint taxation
This definition links "Alternative Minimum Tax" to joint taxation, outlining its impact on married couples filing jointly.
"Alternative Minimum Tax" refers to the tax applied to married couples filing jointly, ensuring that their total deductions and credits do not reduce their tax liability below the minimum required.
Definition of "Alternative Minimum Tax" in refundable tax credits
This definition applies "Alternative Minimum Tax" to refundable tax credits, specifying its effect on taxpayers claiming these credits.
"Alternative Minimum Tax" means the tax liability that cannot be reduced below the minimum amount, even if a taxpayer is eligible for refundable tax credits.
Definition of "Alternative Minimum Tax" in rental property deductions
This definition ties "Alternative Minimum Tax" to rental property deductions, ensuring that property owners still pay the minimum tax despite substantial deductions.
"Alternative Minimum Tax" refers to the tax applied to rental property owners, ensuring that deductions for rental property expenses do not reduce the taxpayer’s liability below the prescribed minimum amount.
Definition of "Alternative Minimum Tax" in high-net-worth individuals
This definition connects "Alternative Minimum Tax" to high-net-worth individuals, specifying how it applies to those with significant wealth.
"Alternative Minimum Tax" refers to the minimum tax liability for high-net-worth individuals, ensuring that despite large deductions, they still pay a minimum amount of tax as set by the tax authorities.
Definition of "Alternative Minimum Tax" in tax deferral strategies
This definition ties "Alternative Minimum Tax" to tax deferral strategies, explaining its role in limiting the benefits of such strategies.
"Alternative Minimum Tax" means the minimum tax amount that applies to taxpayers utilizing tax deferral strategies, ensuring that deferring income does not reduce their tax liability below a specified minimum threshold.
Definition of "Alternative Minimum Tax" in tax credits for education
This definition links "Alternative Minimum Tax" to education-related tax credits, detailing how they interact with the minimum tax calculation.
"Alternative Minimum Tax" refers to the tax that is calculated after considering education-related tax credits, ensuring that these credits do not reduce a taxpayer’s liability below the minimum tax threshold.
Definition of "Alternative Minimum Tax" in hybrid taxation systems
This definition applies "Alternative Minimum Tax" to hybrid taxation systems, where it interacts with multiple forms of tax rules.
"Alternative Minimum Tax" means the minimum tax liability calculated within a hybrid taxation system, ensuring that taxpayers pay at least a minimal amount of tax when using tax strategies from different jurisdictions or tax codes.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.