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Minimum Tax

   Also found in: Wikipedia 0.01 sec.
Alternative Minimum Tax
A tax in the United States intended to be levied on very wealthy persons who are eligible for so many deductions that they would otherwise have little or no tax liability. To arrive at the AMT, one adds certain deductions back into a person's adjusted gross income and then subtracts the AMT exemption, which results in the alternative minimum tax income. The taxpayer then pays a percentage of the alternative minimum tax income rather than his/her AGI. The AMT is controversial in the United States because it is not indexed to inflation, meaning that upper middle class families are gradually becoming subject to it, rather than only the very wealthy. See also: Tentative minimum tax, Bracket creep.

minimum tax


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31, 2009 or their actual purchasing price, whichever higher, as the cost in the calculation of their profits when selling their beneficial certificates, so as to cut their burden for the minimum tax scheme for local people's overseas incomes, scheduled to take effect from Jan.
He said that minimum tax under Section 113, which was deleted in tax year 2009, has been re-levied from tax year 2010 vide Finance Act 2009.
The alternative minimum tax (AMT) is one of the least understood and most controversial parts of the federal income tax system of the United States.
 
 
 
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