Tax Reform Act

[AI summary unavailable — showing source text] Tax Reform Act - Title I: Amendments Primarily Affecting Individuals - Provides that the minimum tax for tax preferences is altered by (1) reducing the exemption to $10,000; (2) imposing a graduated tax rate on additional amounts of tax preferences; and (3) eliminating deferral of the minimum tax. Imposes a tax for the purposes of computing taxable income, on the appreciation of capital assets transferred at death or by gift. Excludes from this tax specified property passing to spouses and charities. Reduces the amount of the exemption for interest paid by an individual borrowing for large investments from $25,000 to $10,000. Expands the definition of "investment interest" to include interest paid on passive oil, gas, mineral or real estate investments. Repeals the present law which allows U.S. citizens who live abroad to exclude from taxable income $25,000 (if they are bona fide residents of a foreign country) or $20,000 (if they live abroad for at least 17 out of 18 months). Title II: Amendments Primarily Affecting Corporations - Restricts the investment tax credit for investments in machinery and equipment to allow a credit only for net increases in investment. Repeals rapid amo…