Investor Glossary-tax reform act of 1986Investor Glossary-tax reform act of 1986Investor Glossary-tax reform act of 1986Investor Glossary-tax reform act of 1986Insightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Tax Reform Act Of 1986

The HTML to link to this page
 

The Tax Reform Act of 1986 constituted a major overhaul of the U.S. income tax system. Key provisions in the Tax Reform Act of 1986 included the elimination or alteration of several deductions, a reduction in the number of tax brackets, and limitations on real estate tax shelters. Among the deductions repealed by the Tax Reform Act of 1986 were those for two-earner married couples, local and state sales taxes, and attendance at investment seminars. Among the deductions limited by the Tax Reform Act of 1986 were those for IRA contributions, out-of pocket medical expenses, and business meal and entertainment expenses. Prior to the enactment of the Tax Reform Act of 1986, there had been 15 brackets, the top one being 50%. The Tax Reform Act of 1986 established new brackets at 15%, 28%, and 33% for individuals. The Tax Reform Act of 1986 also established a distinction between "active" and "passive" real estate income, and directed that passive income losses could not be used to offset active income gains. However, the Tax Reform Act of 1986 did benefit individuals by increasing the personal exemption and the standard deduction, and indexing the latter to inflation. Business tax reforms were part of the Tax Reform Act of 1986 as well. Changes brought about by the Tax Reform Act of 1986 included setting the top corporate tax rate at 34% and applying the alternative minimum tax to corporations.



Rate this Tax Reform Act of 1986 definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 401a, real GDP, inflation, command economy, in escrow, cancelled check, ex-dividend, 1035 exchange, required rate of return, Key Rate Duration, stock market close, margin rate, average price per share, current ratio, deferred tax, Zero Cost Collar, stock split, EBITDA, implied volatility, LIBOR, balance sheet, risk management, FTSE, deferred revenue, per diem, labor relations, retained earnings, debt service coverage, phantom income, ex-dividend date, liquidity ratio, FICO score, 1031 exchange, annual return, option premium, covered put, 144a, wholly-owned subsidiary, irrevocable trust, APR, reverse mortgage, minority interest, open position, VIX, quality assurance, class C shares, dividends payable, limit order, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use