Category Archives: G

Grantor Trust

Grantor Trust

Grantor Trust means:
a trust that has beneficiaries other than the grantor but, because interests or certain powers over the trust, are retained, all income of the trust is taxed to the grantor. Former IRC (check if this IRC provision is current here) §§671-677.

Description and Definition of Grantor Trust

A trust in which the grantor retains some interest and control and as a result is taxed on any income from the trust.

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Gift

Gift

Gift means:
the voluntary transfer of property made without financial consideration; that is, no value is received in return. Each donor may give $10,000 annually to each donee without affecting the $600,000 lifetime exemption of property passing from an estate. Married persons may transfer unlimited amounts to their spouses as a gift during their lifetime. In federal tax law, a gift is excluded from the gross income of the recipient, but the transferor may be subject to the unified estate and gift tax. Nondeductible transfers to political organizations are exempt from the federal gift tax.

See also other Tax Terms and Definitions in U.S.A.

business gift.

United States Gift Issue

You may find information about United States Gift in this Tax Platform of the American Encyclopedia of Law.

Group Life Insurance

Group Life Insurance

Group Life Insurance means:
a basic employee benefit Under which an employer buys a master policy and issues to employees certificates denoting participation in the plan. Group life is also available through unions and associations. It is usually issued as yearly renewable term insurance although some policies provide permanent insurance. An employer may pay all the cost or share it with employees. The premiums paid by the company on such insurance are not taxable to the employee on coverage of up to $50,000 per person. Former IRC (check if this IRC provision is current here) §79 and Reg. §1.79-l(a).

Description and Definition of Group Life Insurance

Life insurance obtained by an employer for employees. Employees are not taxed on up to $50,000 of group life insurance coverage. Premiums for the first $50,000 of life insurance per employee are deductible by the employer.

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Gift Tax

Gift Tax

Gift Tax means:
a graduated excise tax levied on the donor of a gift by the federal government and most state governments when assets are passed from one person to another. To prevent people from avoiding the estate tax by giving their property away, the law includes a gift tax. A taxpayer may give up to $13,000 yearly to as many people he or she wants without worrying about this tax. Larger gifts are taxable, but a tax credit offsets the tax on the first $5 million of lifetime taxable gifts. Generally, each person may give up to $10,000 per year to each donee without imposition of a federal gift tax. On higher gifts in the same year, however, there may be a gift tax, or the gift may affect the donor's estate tax by reducing the $600,000 lifetime gift and estate tax exclusion. Any part of the credit used to protect taxable gifts will not be available to reduce estate taxes. Former IRC (check if this IRC provision is current here) §2501.

See also other Tax Terms and Definitions in U.S.A.

unified estate and gift tax.

When the gift tax is owed, it is owed by the giver, not the recipient.

See Excise and Excise.

Description and Definition of Gift Tax

A tax levied on an individual who gives more than $10,000 per year to another individual. Gifts in excess of the $10,000 per donee annual exclusion are subject to gift tax, but the tax may be offset by a unified gift and estate tax credit. Tax credits offset the tax on the first $650,000 of lifetime taxable gifts. That limit will gradually rise to $1 million in 2006. Any part of the credit used to protect taxable gifts will not be available to reduce estate taxes. When the gift tax is owed, it is owed by the giver, not the recipient.

Federal Estate and Gift Tax Applicable Exclusion Amount Issue

You may find information about Federal Estate and Gift Tax Applicable Exclusion Amount in this Tax Platform of the American Encyclopedia of Law.

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Generally Accepted Accounting Principles

Generally Accepted Accounting Principles

About Generally Accepted Accounting Principles: Generally Accepted Accounting Principles (GAAP) are conventions, rules, and procedures that define accepted accounting practice, including broad guidelines as well as detailed procedures. Tax law frequently requires different treatment for an accounting matter than GAAP.

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Accounting for Banks

This section explores some details of Accounting for Banks in relation to accounting regulation in the United States. See more in the main entry.

Accounting for Government Contracts

This section explores some details of Accounting for Government Contracts in relation to accounting regulation in the United States. See more in the main entry.

Cost Accounting Standards

This section explores some details of Cost Accounting Standards in relation to accounting regulation in the United States. See more in the main entry.

Federal Acquisition Regulation

This section explores some details of Federal Acquisition Regulation in relation to accounting regulation in the United States. See more in the main entry.

Accounting for Public Utilities

This section explores some details of Accounting for Public Utilities in relation to accounting regulation in the United States. See more in the main entry.

Applying GAAP & GAAS

This section explores some details of Applying GAAP & GAAS in relation to accounting regulation in the United States. See more in the main entry.

Applying Government Accounting Principles

This section explores some details of Applying Government Accounting Principles in relation to accounting regulation in the United States. See more in the main entry.

Auditing & Financial Reporting

This section explores some details of Auditing & Financial Reporting in relation to accounting regulation in the United States. See more in the main entry.

Bank Holding Company Compliance

This section explores some details of Bank Holding Company Compliance in relation to accounting regulation in the United States. See more in the main entry.

Sarbanes-Oxley Compliance

This section explores some details of Sarbanes-Oxley Compliance in relation to accounting regulation in the United States. See more in the main entry.

Internal Auditors

This section explores some details of Internal Auditors in relation to accounting regulation in the United States. See more in the main entry.

Description and Definition of Generally Accepted Accounting Principles (GAAP)

Rules and procedures established and used by accountants. The rules guide them in accounting and reporting on a company's finances.

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Guaranteed Payments

Guaranteed Payments

The Guaranteed Payments are.

payments to a partner by a partnership that are determined without regard to partnership income and are for the use of that partner's capital. Former Tax Regulation (check if this Reg. is current here) §1.707-4(a)(l)(i).

Description and Definition of Guaranteed Payments to Partners

Payments made to partners without regard to the partnership's income or loss. These guaranteed payments are often a form of salary for working partners, and they may be subject to self-employment tax.

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Gambling

Gambling

Gambling Income and Expenses

Gambling winnings are fully taxable and must be reported on your tax return. You must file Form 1040 (PDF) and include all of your winnings on line 21. Gambling income includes, but is not limited to, winnings from lotteries, raffles, horse races, and casinos. It includes cash winnings and also the fair market value of prizes such as cars and trips. For additional information, refer to Publication 525, Taxable and Nontaxable Income.

A payer is required to issue you a Form W-2G (PDF) if you receive $600 or more in gambling winnings or if you have any gambling winnings subject to Federal income tax withholding. The $600 amount is increased to $ 1,200 for winnings from bingo or slot machines and to $ 1,500 for winning from Keno. If you have won more than $5,000, the payer generally is required to withhold 25% of the proceeds for Federal Income Tax. If you did not provide your social security number the payer may have to withhold 28%. For more information on withholding, refer to Publication 505, Tax Withholding and Estimated Tax.

Per IRC Sec. 165(d) you may deduct gambling losses only if you itemize deductions and only to the extent of the gains from such transactions. (This was formerly Sec. 23(h) of IRC of 1934. You may need to know this for legal research. Claim your gambling losses as a miscellaneous deduction on Form 1040, Schedule A (PDF), line 27. This bifurcation results in the “Gambler’s AGI Penalty.”

There is much confusion regarding how to report gambling transactions; i.e. should transactions be reported based on each pull of the slot machine, roll of the dice, and draw of the card. Conversely, should gamblers simply report the “net amount for the year?” The courts and IRS have said no. Instead the courts and IRS have developed the concept of the “Gambling Session.” Gamblers should report the total of all “winning” gambling sessions on Form 1040, Page 1, Line 21. Gamblers should report all “losing” gambling sessions on Schedule A, Other Miscellaneous Deductions as “Gambling Losses to the Extent of Gambling Winnings.” Many glossary terms used in reporting gambling winnings and losses have very specific meanings as they pertain to reporting. Preparers should be familiar with these glossary terms.

It is important to keep an accurate diary or similar record of your gambling winnings and losses. There are many unfortunate myths surrounding the documentation required to deduct gambling losses. According to Rev. Proc. 77-29 gamblers must keep a diary that shows 1) the date & type of wager, 2) the name of the gambling establishment, 3) the address of the gambling estabishment, 4) the name of any other persons present at the time, and 5) the amount won or lost. Related court cases shed additional light on how the courts and IRS have interpreted Sec. 165(d)

Refer to Publication 529, Miscellaneous Deductions, for more information.

Description and Definition of Gambling Income and Losses

Income and losses from gambling, such as lotteries, bingo, and racing. Even if your wager was illegal the winnings are taxable. Gambling losses are only deductible to the extent that you report gambling income for the tax year.

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Gross Income

Gross Income

Gross Income means:
the total of a taxpayer's income from any source, except items specifically excluded by the Internal Revenue Code and other items not subject to tax. Former IRC (check if this IRC provision is current here) §61. See Gross Income and Gross Income.

Money, goods, services, and property a person receives that must be reported on a tax return. Includes unemployment compensation and certain scholarships. It does not include welfare benefits and nontaxable Social Security benefits. TAXES ON GROSS INCOME: In some countries income taxes are levied on gross income (usually at low rates) without deduction for expenses.

U.S. and other Developed Countries International Tax Meaning

Gross receipts, whether in the form of cash or property, of the taxpayer received as compensation for independent personal services, and the gross receipts of the taxpayer derived from a trade, business or services, including interest, dividends, royalties, rentals, fees or otherwise.

Gross Income and California Tax

For more information about taxes in California, click here. All income you received in the form of money, goods, property, and services from all sources that are not exempt from tax. Gross income does not include any adjustments or deductions.

Description and Definition of Gross Income

The total amount of income received from all sources before adjustments, deductions, or exemptions. Gross income deals with all the money, goods and property you receive that must be included as taxable income. People who use the barter system exchanging non-monetary goods and/or services as payment have to include whatever they've bartered for as part of their gross income.

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