tax preference item

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Tax preference item

Items that must be included when calculating the alternative minimum tax.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

tax preference item

An item that can be legally omitted in order to reduce taxable income when calculating an individual's tax liability by ordinary means. However, the item must be included when calculating the individual's alternative minimum tax. For example, interest paid by certain municipal bonds that is ordinarily omitted in calculating taxable income must be included when calculating the alternative minimum tax.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
AMTI is the taxpayer's regular taxable income increased by certain preference items and adjusted by determining the tax treatment of certain items in a manner that negates the deferral of income resulting from the regular tax treatment of those items.
Thus, an ANOVA was performed with SPA [low (n = 43), moderate (n = 47), and high (n = 44)] as the independent variable and the social and physical preference items as the dependent variables.
In a study, 61 percent of orthopedic products were physician preference items. (2) In 2015, the supply chain spend on physician preference items dropped to approximately 40 percent.
If they have adjustments and preference items that cancel each other out (Scenario 1), the tax base for AMT purposes is also $240,000 and their tentative minimum tax is $63,492 (28% X ($240,000 - $185,400) + 26% X $185,400).
The increase in the effective tax rate is primarily due to a decrease in tax preference items such as income from bank-owned life insurance.
Hospitals plan to employ more physicians, (1) reduce the number of physician preference items, and increase the number of products under contract.
* The frequencies with which various itemized deductions, tax credits, and tax preference items occur as certain percentages of income (Tables 9 and 10); and
In terms of the univariate correlations between the family HRM practice preference items and the ethical stringency item, Table 1 shows the correlations are not in the direction predicted by H2.
Ultimately, these advanced strategic sourcing solutions can save your organization money by giving visibility into an organization's supply purchases and contract activity, helping providers better control contract spend and achieve better product standardization, especially through identification and management of high-cost physician preference items.
What's more, Cardinal noted, WaveMark's RFID technology makes the company's inventory management solution the first end-to-end solution of its kind, powered by a software-as-a-service analytics platform and optimizing the configuration of inventory management tools to track high-priced physician preference items and low-cost, high-volume consumables.
* Tax preference items. For individuals, the proposal would replace the seven existing tax brackets with just three: 10%, 25% and 35%.