The frequencies with which various itemized deductions, tax credits, and tax preference items
occur as certain percentages of income (Tables 9 and 10); and
Tax preference items
, which include portions of deductions or exclusions from income, are added back to the taxpayer's taxable income in computing alternative minimum taxable income (AMTI), which is the basis on which taxpayers compute the tentative minimum tax.
Many tax preference items
(such as excess depletion allowances and interest on private activity bonds) result in permanent differences.
The decrease in income tax expense was primarily due to a decrease in taxable income for the quarter below the level of aggregate tax preference items
and fixed tax credits.
Adding the LTCG into gross income and using the AMT calculation, without tax preference items
, the total tax due would be:
The alternative minimum tax (AMT) is a parallel tax system (calculated separately from regular taxes) designed to ensure that wealthy taxpayers with substantial tax preference items
are subject to some income tax liability.
and the treatment of certain tax preference items
Companies with large foreign operations or tax preference items
such as accelerated depreciation, research or other tax credits may have less taxable income from which to issue tax-exempt dividends.
56 and 58 and increased by the tax preference items
described in Sec.
OBRA also says contributions of appreciated property no longer will be treated as tax preference items
in determining AMT.
55 imposes the AMT on certain tax preference items
, such as ISOs.
income tax regulations regarding the payment of add-on minimum tax and the treatment of certain tax preference items
for the years 1977 through 1986, the company is entitled to a federal income tax refund plus accrued interest.