Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA


DEFINITION of 'Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA'

A tax-related act signed by President George W. Bush in May 2006 that contains revisions to pre-existing tax laws. Revisions include topics concerning investor-related tax breaks, business provisions, individual retirement accounts, "kiddie tax" and alternative minimum taxes.

Also known as Public Law 109-222.

BREAKING DOWN 'Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA'

For the most part, the provisions are beneficial for the vast majority of taxpayers. For example, lowered capital gain tax rates were extended until 2010 and higher exemption amounts for the alternative minimum tax will enable qualified taxpayers to pay a lower amount of taxes in those areas.

Furthermore, TIPRA also includes some retirement-related benefits. For example, TIPRA enables taxpayers with modified adjusted gross incomes surpassing $100,000 to be eligible for a Roth IRA conversion.

  1. Taxes

    An involuntary fee levied on corporations or individuals that ...
  2. Roth IRA

    An individual retirement plan that bears many similarities to ...
  3. Modified Adjusted Gross Income ...

    The amount of income that determines how much of an individual's ...
  4. Capital Gain

    1. An increase in the value of a capital asset (investment or ...
  5. Alternative Minimum Tax - AMT

    A tax calculation that adds certain tax preference items back ...
  6. Roth IRA Conversion

    A reportable movement of assets from a Traditional, SEP or SIMPLE ...
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