alternative minimum tax
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. . 1996.

alternative minimum tax
(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 & Finances
Category: Business Cash Flow Problems & Bankruptcy
Category: Business, LLCs & Corporations → Business Tax & Deductions
Category: Personal Finance & Retirement → Money & Taxes for Retirees
Category: Personal Finance & Retirement → Taxes → Tax Audits

Nolo’s Plain-English Law Dictionary. . 2009.

Look at other dictionaries:

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  • minimum tax — See alternative minimum tax …   Black's law dictionary

  • minimum tax — See alternative minimum tax …   Black's law dictionary

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