Tax Terms

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August 31, 2024 4 min read Definitions

Exemption Amount: A Key Component in AMT Calculation

Finance Taxes Exemption Amount AMTI AMT Tax Deductions Tax Terms

An Exemption Amount is a fixed amount deducted from Adjusted Minimum Taxable Income (AMTI) to compute the Alternative Minimum Tax (AMT).

August 25, 2024 3 min read Definitions

Basis: Tax Calculation of Cost in Acquiring an Asset

Taxes Accounting Tax Terms Cost Basis Asset Acquisition Depreciation Tax Computation

Basis refers to the amount representing the taxpayer's cost in acquiring an asset, used for computing gain or loss on sale, exchange, and depreciation purposes.