Lesson 9: ALTERNATIVE TAX

Lesson 9: ALTERNATIVE TAX

The alternative minimum tax (AMT) is an income tax imposed by the United States federal government on individuals, corporations, estates, and trusts. AMT is imposed at a nearly flat rate on an adjusted amount of taxable income above a certain threshold (also known as exemption). This exemption is substantially higher than the exemption from regular income tax. Regular taxable income is adjusted for certain items computed differently for AMT, such as depreciation and medical expenses. No deduction is allowed for state taxes or miscellaneous itemized deductions in computing AMT income. Taxpayers with incomes above the exemption whose regular Federal income tax is below the amount of AMT must pay the higher AMT amount.

Attachments1

 

Top Rated Course

Course Reviews

top
wce.education © WCE. All rights reserved. AddressAlong pearl Road off Spokane Avenue 4316 Cleveland, OH 44109, United States of America Phone: +1 (413) 461-3136
X