tax preference item

Definition of "tax preference item"
  1. 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
How to use "tax preference item" in a sentence
  1. The accountant had to calculate tax preference items to understand the client's total liability for the alternative minimum tax.
  2. She had to thoroughly examine tax preference items to make sure she wasn't overpaying her taxes.
  3. Their tax planning strategies involved closely studying tax preference items to minimize tax liabilities.

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