alternative minimum tax

noun

Definition of alternative minimum tax

  1. :  a U.S. federal income tax that was originally imposed to prevent wealthy taxpayers from using tax shelters to avoid paying taxes, that excludes many deductions and exemptions allowed in computing regular tax liability, and that must be paid instead of the regular tax liability by individuals and businesses whose alternative minimum tax liability is greater than their regular tax liability

1958

First Known Use of alternative minimum tax

1958


Law Dictionary

alternative minimum tax

noun

Legal Definition of alternative minimum tax

  1. :  a federal tax that prevents a person or entity (as a corporation) with taxable income from avoiding tax liability and that imposes tax liability in the amount of the excess of the tentative minimum tax over regular tax liability — see also tax preference item


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