AMT Exemption

AMT Exemption

The amount of a person or company's income or profit that is not subject to the alternative minimum tax. The AMT exemption gradually decreases as one's income or profit increases.
References in periodicals archive ?
ABC will continue to qualify for the AMT exemption in 2009 and later years if the average gross receipts for the previous three years (or portion thereof) do not exceed $7.
The increase for inflation of the AMT exemption amounts for individuals had often been late-enacted relief in years past.
The AMT was created to catch millionaires using tax planning techniques to zero out income, but since the AMT exemption amount was not indexed for inflation it has come to impact many taxpayers, particularly in states with high income taxes and high property taxes.
Thus, despite the fact that there was another increase in AMT exemption amounts, real AMT increased by 34.
Alternative Minimum Tax--For 2012 and future years, the AMT exemption amounts revert to lower statutory amounts ranging from $22,500 to $45,000;
Unless the higher AMT exemption amounts are extended, tens of millions of taxpayers could become subject to the AMT in 2010.
The reasons are complicated, but the result stems from the fact that as you capture gains, your AMT exemption might be phased out, resulting in a higher income that is subject to the AMT.
The first provision is a one-year extension and increase in the AMT exemption levels.
6%, while the AMT rates stood at 26% and 28% and there was a substantial AMT exemption amount, the AMT had little applicability to most taxpayers.
The expanded AMT exemption amounts that were due to expire in 2004 are extended for one year, through 2005.
In other words, there are many circumstances where the AMT exemption is significantly reduced or completely phased out
The AMT exemption increased for 2008 to $69,950 for joint filers and surviving spouses, $46,200 for single filers and $34,975 for married persons filing separate returns.