What does regular tax mean on the CPA exam?
Regular tax. Tax computed under the ordinary rules, before the alternative minimum tax is considered. AMT is owed only to the extent it exceeds this.
Defined against Sec. 55(a).
Which CPA exam sections use regular tax?
Regular tax appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.
Related terms
- tentative minimum tax: The alternative minimum tax computed on its own, before comparing it to the regular tax.
- kiddie tax: Taxing a child's unearned income above a threshold at the parents' rate, so that income cannot be shifted to a lower bracket by gift.
- self-employment tax: Social Security and Medicare tax paid by someone working for themselves, covering both the employee and employer halves.
- material participation: Involvement in an activity that is regular, continuous and substantial, tested against seven alternative standards.
- partnership interest: A partner's stake in the partnership itself, distinct from any interest in its underlying assets.