tax preference items

Tax Preference Item

Income or other event that is excluded when calculating one's ordinary tax liability but is included when calculating one's liability for the alternative minimum tax. That is, a tax preference item is an item that would be tax deductible under normal circumstances but is not for purposes of the alternative minimum tax. Examples include depreciation and some interest on municipal bonds.

tax preference items

Certain types of income or deductions that are used to calculate the alternative minimum tax. The most common item related to real estate is the depreciation deduction.

Tax Preference Items

Tax items that may result in the imposition of the alternative minimum tax.
References in periodicals archive ?
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.
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 for the
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.