Tax Increase Prevention and Reconciliation Act of 2005 - TIPRA

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Modified Adjusted Gross Income ...

    The amount of income that determines how much of an individual's ...
  2. Tax Fairness

    A tax platform based on an ideal that aims to create a system ...
  3. Capital Gain

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

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

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

    An involuntary fee levied on corporations or individuals that ...
Related Articles
  1. Earnings within a Roth IRA are tax free, ...
    Retirement

    Earnings within a Roth IRA are tax free, ...

  2. 3 Retirement Account Rules To Know
    Taxes

    3 Retirement Account Rules To Know

  3. Should You Convert To A Roth IRA In ...
    Retirement

    Should You Convert To A Roth IRA In ...

  4. Roth 401(k), 403(b): Which Is Right ...
    Retirement

    Roth 401(k), 403(b): Which Is Right ...

comments powered by Disqus
Hot Definitions
  1. Walras' Law

    An economics law that suggests that the existence of excess supply in one market must be matched by excess demand in another ...
  2. Market Segmentation

    A marketing term referring to the aggregating of prospective buyers into groups (segments) that have common needs and will ...
  3. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  4. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  5. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  6. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
Trading Center