Tax Rate Differential definition
Tax Rate Differential means a decimal equal to the difference between (i) the maximum marginal federal and New York State and New York City individual tax rate applicable to ordinary income (including, to the extent applicable, alternative minimum tax, if any) and (ii) the maximum marginal federal and New York State and New York City individual tax rate applicable to long-term capital gains (including, to the extent applicable, alternative minimum tax, if any).
Tax Rate Differential for Seller’s taxable year including the Closing Date shall be equal to the excess (currently 13%) of the highest marginal federal alternative minimum Tax rate (including any surtax) that applies to a U.S. citizen for such taxable year (currently 28%) over the highest rate of federal income Tax that applies to a U.S. citizen’s long-term capital gains for such taxable year (currently 15%).
Examples of Tax Rate Differential in a sentence
The amount of the Executive's Tax Rate Differential Amount shall be determined by the Accounting Firm.