alternative minimum tax

alternative minimum tax definition - finance
A federal income tax provision that ensures that wealthy individuals, estates, trusts, and corporations pay a minimum level of tax. To arrive at AMT, certain items, such as passive losses from tax shelters, are added to adjusted gross income. The tax rate charged to individuals varies, though the tax rate a corporation pays is 20 percent.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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