Taxes and Business Strategy
The Alternative Minimum Tax (AMT) is a parallel tax system designed to ensure that individuals and corporations pay at least a minimum amount of tax, regardless of deductions and credits they may be eligible for under the regular income tax system. This tax aims to prevent high-income earners from using loopholes and excessive deductions to avoid taxation. Understanding AMT is essential as it intersects with various financial decisions, such as stock options and depreciation methods.
congrats on reading the definition of Alternative Minimum Tax (AMT). now let's actually learn it.