Minimum Tax Act of 1986

[AI summary unavailable — showing source text] Minimum Tax Act of 1986 - Amends the Internal Revenue Code to revise the alternative minimum tax for individuals and corporations. Sets the rate of such tax as an amount equal to the excess of: (1) the tentative minimum tax for the taxable year; over (2) the regular tax for the taxable year. Defines the "tentative minimum tax" as 22.5 percent (20 percent in the case of a corporation) of so much of the alternative minimum taxable income as exceeds the exemption amount, reduced by the alternative minimum tax foreign tax credit for the taxable year. Sets the exemption amount at: (1) $30,000 in the case of a joint return or a surviving spouse; (2) $25,000 in the case of an unmarried individual; (3) $15,000 in the case of a married individual filing a separate return or an estate or trust; and (4) $40,000 in the case of a corporation. Sets forth the method of calculating alternative minimum taxable income. Specifies certain adjustments in the calculation of such alternative minimum taxable income. Specifies certain tax preferences to be included in the calculation of such alternative minimum taxable income. Allows an alternative minimum tax foreign tax credit. Sets forth the method of c…