We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Alternative Minimum Tax: Created 1969 By The Tax Reform Act Essay Sample

essay
  • Pages: 2
  • Word count: 327
  • Rewriting Possibility: 99% (excellent)
  • Category: corporation Tax

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Introduction of TOPIC

Alternative minimum tax (AMT) was created in 1969 by the Tax Reform Act to make certain that high-income individuals, corporations, trusts, and estates pay at least some small amount of tax, in spite of any deductions, credits, or exemptions. It’s basically an alternative method used by the IRS for calculating your taxes, an extra tax that was an addition to regular income tax. To calculate your AMT you start with your AGI (adjusted gross income), then you give back the “tax preference items” and “adjustments” under the AMT rules to get your taxable income for AMTI (AMT taxable income). After that a tax rate is applied of eith

er 26% or 28% to the income. It is a tax apparatus that is triggered when a big number of exemptions

Sorry, but full essay samples are available only for registered users

Choose a Membership Plan
on state and local taxes paid, expenses (medical or itemized), deductions, or on ISO plans. To calculate AMT, you must use the Form 6251 along with the 1040, you use whichever is higher, the AMT or the regular tax owed.

The words “tax preference items” and “adjustments” include all of the following; accelerated depreciation, miscellaneous itemized deductions, the bargain aspect of ISO plans, percentage depletion, state and local income, sales and property taxes, a part of deductible medical expenses, certain tax-exempt income and credits, personal exemptions, standard deductions, tax shelters, interest on second mortgages and some long-term capital gains. The difference between the two terms is that a preference is an addition between the special AMT and regular tax treatment, and the adjustments entail a replacement of a special AMT treatment of an item for the regular tax treatment. This plan started out only to affect a small number of taxpayers, but over the years has grown significantly. Some think that the rise of inflation is the likely cause of this growth. If a taxpayer has paid the AMT, than they are subject to a tax credit to reduce their future tax liability.

We can write a custom essay on

Alternative Minimum Tax: Created 1969 By The Tax R ...
According to Your Specific Requirements.

Order an essay

You May Also Find These Documents Helpful

What happened in the past with Coca-Cola?

Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups. Coca- Cola Company has been found 131 years ago in May 8,1886 in Atlanta, Georgia, U.S. by Asa Griggs Cadler and John Pemberton. John Stith Pemberton is pharmacist who invented formula for the most popular product Coca-Cola in 1886 in Columbus, Georgia. The formula is still a trade secret.Coca-Cola is a carbonated soft drink where the drink’s name refers two of its original integrities, which are kola nuts (source of caffeine) and cola leaves. Based on Interbrand’s “best global brand” study of 2015, Coca-Cola was the word’s third most valuable brand, after Apple and Google. But, was it always like that? What happened in the past with Coca-Cola? Where they always mindful with their responsibilities? Crisis situation In 1990s, Coca-Cola has been accused of unethical behavior in a number of areas...

Understand how to make minutes of meetings

Minutes of meetings allow people who attended the meeting and anyone else who the information needs to be shared with to look back on the meetings key information and also to clarify and actions taken or actions that have said will be taken. Minutes are legal documents that are used as a proof for referring back to in the future. The minutes should contain the title, time, date, place of meeting, names of attendees, apologies, visitors, items, actions required and date for next meeting. Meeting minutes can be long and detailed, or they can be short and to the point, depending on the nature of the meeting. In situations of critical importance, and where the record is important, you may need to take detailed minutes. When this isn’t the case, minutes can be simple lists of decisions made and actions that need to be taken (with the responsible person identified)....

IndyCar Case

1: Identify the external factors that have impacted and continue to impact IndyCar and its marketing efforts. Which factors appear to be IndyCar’s greatest opportunities and threats? IndyCar has a few advantages over NASCAR being in the U.S. NASCAR has almost all of their drivers being white males from the U.S., were as IndyCar has drivers from All over the world which has given them an advantage in have a more divers driver base. In this Case study it is brought out to be a threat, however I believe that it can be a great advantage for IndyCar in diversifying their field, then they can strategically focus on the right market. I think one of their threats is the fact that they want to stay on the oval market even though NASCAR has the entire oval track racing covered. They have to keep a divers track layout which will keep...

Popular Essays

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?