What ALTERNATIVE MINIMUM TAX (AMT) means: A method of computing tax under which some of the income and deductions reported on the forms and schedules filed with your tax return are figured differently or disallowed. For example, interest on certain tax-exempt bonds is taxable for the alternative minimum tax, certain itemized deductions are not allowed when figuring the alternative minimum tax, and the alternative minimum tax has its own exemption amount, not based on the number of exmptions claimed on your tax return. A taxpayer pays the larger of the "regular tax" or the alternative minimum tax. The alternative minimum tax is computed on Form 6251.
- Definition Amended Return:
- Dictionary on Form 1040X after the original return has been filed. An amended return is used to correct errors or to claim more advantageous ways of filing the original return. An amended return can also be alternative minimum tax (amt) definition.
- Definition Annualized Income:
- Dictionary and expenditures for a particular period multiplied by the ratio of 12 to the number of months in the period. For example, if annualizing the income for the period January 1 though May 31, multiply alternative minimum tax (amt) explain.
- Definition Adjusted Basis:
- Dictionary original basis of property reduced by adjustments such as depreciation allowed or allowable and casualty losses, and increased by the cost of capital improvements, expenses of purchase, and other alternative minimum tax (amt) what is.
- Definition Anti-Churning Rules:
- Dictionary prevent taxpayers from taking advantage of new laws by acquiring property eligible for benefits available under the new law from a related party that was used by the related property before the alternative minimum tax (amt) meaning.
How works Alternative Minimum Tax (AMT meaning in Tax definitions A .
