Category Archives: I

Indirect Tax

Indirect Tax

About Indirect Tax:

A tax that can be shifted to others, such as sales taxes, VAT (in Europe and other regions) and business property taxes. See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference.

U.S. and other Developed Countries International Tax Meaning

Tax imposed on certain transactions, goods or events. Examples include VAT, sales tax, excise duties, stamp duty, services tax, registration duty and transaction tax.

See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference.

See Property Tax in the American Legal Encyclopedia and Property Tax in the World Legal Encyclopedia.

See Sales tax in the U.S. Encyclopedia and Sales tax in the International Encyclopedia

Description and Definition of Indirect Tax

A type of tax that can be shifted to others. A company might have to pay a specific tax to the government. The company pays the tax but increases the cost of their products so consumers are actually paying the tax indirectly by paying more for the company's products.

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Improvements

Improvements

Description and Definition of Improvements

The expenses of permanently upgrading your property as compared to maintaining or repairing it. You add the cost of the improvements to the basis of the property instead of taking a deduction for the cost of the improvements in the year paid. If the property you improved is a building that is being depreciated you must depreciate the improvements over the same useful life as the building.

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Identity Theft

Identity Theft

Identity Theft Affidavit, I.R.S Form 14039 Issue

You may find information about Identity Theft Affidavit, I.R.S Form 14039 in this Tax Platform of the American Encyclopedia of Law.

Tax Related Identity Theft Issue

You may find information about Tax Related Identity Theft in this Tax Platform of the American Encyclopedia of Law.

Insurance Returns

Insurance Returns

Transmittal of Employer-Provided Health Insurance Offer and Coverage Insurance Returns, I.R.S. Form 1094-C Issue

You may find information about Transmittal of Employer-Provided Health Insurance Offer and Coverage Insurance Returns, I.R.S. Form 1094-C in this Tax Platform of the American Encyclopedia of Law.

Investment Interest Expense

Investment Interest Expense

Investment Interest Expense means (see more about entries related to interest in the U.S. here)

interest paid to carry portfolio investments such as bonds, stocks, and undeveloped land. (Investment interest is Interest paid on loans used for investment purposes, such as to buy stock on margin).Tax deductions by non-corporate taxpayers for investment interest expense are limited to the income received from the investment, such as dividends, interest, and capital gains. However, beginning in 1993, capital gains cannot be used for this purpose unless the taxpayer reduces the amount of capital gains that is eligible for the 28% maximum capital gains rate.

Investment interest

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The taxpayer can deduct this interest on Schedule A if you itemize, up to the amount of investment income (not including capital gains or dividends that qualify for the 0% or 15% rates) in the taxpayer report.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

See Corporate Tax in the U.S. Legal Encyclopedia and Corporate Tax in the International Legal Encyclopedia.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.

Description and Definition of Investment Interest Expense

Interest paid on loans used for investment purposes such as margin loans to buy stock – but not including interest expense from a passive activity. The investment interest expense deduction is limited to the income from investments.

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Incentive Stock Option

Incentive Stock Option

About Incentive Stock Option:

The Incentive Stock Option (ISO) is an equity-type compensation plan under which qualifying stock options are free of tax at the date of grant and the date of exercise but are taxed when sold. Only $100,000 of ISOs can be exercised in one year, and a number of conditions must be met. Former IRC (check if this IRC provision is current here) §422(a).

An option that allows an employee to purchase stock of the employer below current market price. For regular income tax purposes, the “spread” or “bargain element” – the difference between the price paid and market value of the stock – is not taxed when the option is exercised. Rather, it is taxed when the stock is sold. For alternative minimum tax purposes, however, the spread is taxed in the year the option is exercised.

U.S. and other Developed Countries International Tax Meaning

An equity-type compensation plan under which qualifying stock options are free of tax at the date of grant and the date of exercise but are taxed when sold. US system.

Description and Definition of Incentive Stock Option

A type of stock option that is not taxed when received or exercised. Options meeting the tax law test enjoy deferred tax on the option transaction until the underlying stock is sold.

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Itemized Deductions

Itemized Deductions

Itemized Deductions means:
specific individualized tax deductions, allowed under provisions of the Internal Revenue Code and state and municipal tax codes for specific expenses incurred by the taxpayer during the taxable year (e.g., unreimbursed medical expenses, qualified residence interest expense, casualty loss, charitable contributions). These deductions are allowed in computing taxable income. There is an overall limitation on certain itemized deductions. An alternative is to claim the standard deduction. Former IRC (check if this IRC provision is current here) §§63(d), 67, and 68.

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

Itemized deduction limitation and Deductions.

Allowable deductions from income that are individually identified. A taxpayer will itemize deductions instead of claiming a standard deduction of a lesser amount.

U.S. Tax Meaning

In the US a deduction as specifically set forth in the Internal Revenue Code. The deductions in this part are individually listed, item by item.

see Tax Code in the U.S. Encyclopedia and Tax Code in the Global Encyclopedia.

Description and Definition of Itemized Deductions

Items such as deductible interest, medical expenses, state and local taxes, charitable contributions, casualty and theft losses, unreimbursed employee expenses, and miscellaneous deductions that are claimed on Schedule A of Form 1040. These expenses can be deducted to reduce your income after your adjustments and before your income tax calculation. The amount of itemized deductions are subject to a 3% reduction when adjusted gross income exceeds certain limits.

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Individual Retirement Arrangement

Individual Retirement Arrangement

Description and Definition of Individual Retirement Arrangement (IRA)

A retirement account to which $2,000 or 100% of the compensation you earned during the year, whichever is less, may be contributed annually. Deductions for the contribution are restricted if you are covered by a company retirement plan or if your income is above a certain level. Earnings accumulate tax free on IRA contributions. In most cases there is a penalty for withdrawing funds before you reach age 59-1/2.

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Inter Vivos Trust

Inter Vivos Trust

Description and Definition of Inter Vivos Trust

A lifetime trust. An Inter Vivos Trust is created during the lifetime of the benefactor, as opposed to a testamentary trust that is created after the death of the benefactor. If irrevocable, income on the trust principal is shifted to the trust beneficiaries.

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