tax preference item
- A point of consideration in tax calculations, such as a depreciation amount, that gives the taxpayer a financial advantage. However, this item might be subject to taxation under the alternative minimum tax rules
- The accountant had to calculate tax preference items to understand the client's total liability for the alternative minimum tax.
- She had to thoroughly examine tax preference items to make sure she wasn't overpaying her taxes.
- Their tax planning strategies involved closely studying tax preference items to minimize tax liabilities.