What Is Amount Realized? Amount realized is the total amount received from a sale transaction. It factors in cash, the fair market value (FMV) of any assets, existing liabilities, as well as sales expenses. Key Takeaways Amount realized is the total amount received from a sale transaction.It encompasses all forms of compensation, including cash, the
What Is an Alternative Mortgage Instrument (AMI)? An alternative mortgage instrument (AMI) is any residential mortgage loan that deviates from standard mortgage practices. For instance, it may be a mortgage that is not fixed-rate, fully amortizing, has monthly or periodic payments, or a standard term of repayment. Sometimes, an AMI is a loan with real
What Is an Alternative Depreciation System (ADS)? An alternative depreciation system (ADS) is one of the methods the Internal Revenue Service (IRS) requires taxpayers to use to determine the depreciation allowed on business assets. An ADS has a depreciation schedule with a longer recovery period that generally better mirrors the asset’s income streams than declining
What Is Alternative Dispute Resolution (ADR)? Alternative dispute resolution (ADR) is, in an insurance sense, a number of disparate processes used by companies to resolve claims and contractual disputes. Insured clients who are denied a claim are offered this course of action as a form of recourse. It is employed to avoid expensive and time-consuming litigation
What Is the Alternative Fuels Tax Credit? The alternative fuels credit is a non-refundable tax credit awarded to taxpayers who use non-alcohol alternative fuels that are either sold commercially by the taxpayer or used in the taxpayer’s vehicles for business. Tax Deductions Vs. Tax Credits Understanding the Alternative Fuels Tax Credit The alternative fuels credit
What Is the Alternative Investment Fund Managers Directive (AIFMD)? The Alternative Investment Fund Managers Directive (AIFMD) is a European Union (EU) regulation that applies to alternative investments, many of which were left largely unchecked prior to the 2008-09 global financial crisis. The directive sets standards for marketing around raising private capital, remuneration policies, risk monitoring
What Is the Alternative Minimum Tax? An alternative minimum tax (AMT) places a floor on the percentage of taxes that a filer must pay to the government, no matter how many deductions or credits the filer may claim. The United States currently has an alternative minimum tax for taxpayers who earn above certain income thresholds.
What Are Alternative Risk Financing Facilities? An alternative risk financing facility is a type of private insurance created and funded by its customers to provide coverage tailored to their needs. They were originally formed by groups of people or organizations with a common need for a type of coverage that was not available commercially, but
What Is the Alternative Risk Transfer (ART) Market? The alternative risk transfer (ART) market is a portion of the insurance market that allows companies to purchase coverage and transfer risk without having to use traditional commercial insurance. The ART market includes risk retention groups (RRGs), insurance pools, and captive insurers, wholly-owned subsidiary companies that provide risk
Altiplano Option: An Overview An altiplano option is a particularly exotic type of derivatives investment that is based on multiple underlying securities rather than on a single underlying asset. It is one of a family of such options, called mountain range options, that was invented in the 1990s by the Swiss investment firm Société Générale.
