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 ?
While corporate AMT has been eliminated and the individual AMT exemption has been, at least temporarily, significantly increased, IRC section 55(d)(1)(D) has remained unchanged, leaving the statutory AMT exemption amount for estates and trusts at $22,500 and the statutory exemption phaseout threshold amount at $75,000 of AMT income.
Eliminates the Alternative Minimum Tax (AMT) for corporations and increases the AMT exemption amounts and phase-out thresholds for individuals.
The final GOP bill follows the Senate version and increases the AMT exemption amounts, thereby reducing the number of taxpayers subject to AMT.
The primary difference between the SBJA and the PATH Act is that, while the SBJA's AMT exemption applied to all Sec.
Taxpayers in the 35% bracket benefit the most because of the phase-out of the AMT exemption amount and the interaction of the deductions eliminated, AMTI, and exemption phase-out.
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 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.
For years, Congress has increased the AMT exemption amount with a series of "patches.
The Alternative Minimum Tax (AMT) was also permanently patched, with the new AMT exemption amounts set at $78,750 for married couples and $50,600 for singles in 2012, amounts Kitces said are essentially the 2011 amounts adjusted for inflation.
The AMT exemption for 2012 is $78,750 (married, filing jointly); $50,600 for unmarried persons (single or head of household); and $39,375 for married, filing separately.
22) Over the past decade, Congress had regularly enacted temporary increases of the AMT exemption amount to adjust for inflation and allowed nonrefundable personal tax credits to reduce AMT tax liability (these policies are often known as the AMT "patch").
Thus, despite the fact that there was another increase in AMT exemption amounts, real AMT increased by 34.