tax preference item

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Tax preference item

Items that must be included when calculating the alternative minimum tax.

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 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.
References in periodicals archive ?
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).
Hospitals plan to employ more physicians, (1) reduce the number of physician preference items, and increase the number of products under contract.
Hospitals plan to employ more physicians (1) (estimates place the percent of employed orthopedic surgeons at 49 percent (2)), reduce the number of physician preference items, and increase the number of products under contract.
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.
The distributor said the deal expands its portfolio of physician preference items that meet rising demand for high-quality, cost-efficient solutions.
Certain tax preference items would only be deducted against income in the 25% bracket but not the 35% bracket.
The WaveMark RFID technology now makes the firm's inventory management solution the maiden, end-to-end solution of its kind - energized by a SS-based analytics platform and making optimal the configuration of a range of inventory management tools to track high-priced physician preference items as well as affordable, high-volume consumables.
56(d)(2)(A) generally requires a taxpayer to compute its ATNOL in the same manner as its NOL, with appropriate modifications for AMT adjustments and preference items.
The Alternative Minimum Tax (AMT) is imposed on taxpayers whose tax deductions and tax preference items reduce their taxable income below a specified level.
The acquisition is the latest move by GHX to expand its extensive healthcare footprint to include the industry's first comprehensive supply chain solution for physician preference items (PPI) and implantable medical devices.
This was evidenced by the following responses to language of instruction preference items.