tentative minimum tax
- A tax computed by adjusting taxable income with tax preference items under section 57 of the Internal Revenue Code and subtracting an exemption under section 55, which functions as the alternative minimum tax liability when it exceeds regular tax liability
- The accountant calculated the tentative minimum tax to identify potential alternative minimum tax liabilities.
- Under the Internal Revenue Code, the determination of the tentative minimum tax requires the addition and subtraction of certain items.
- The individuals had to pay the tentative minimum tax as it was greater than their regular tax liability.