Category: N

  • Net Operating Loss (NOL)

    Description and Definition of Net Operating Loss (NOL) A net operating loss is experienced by a business when it's deductions exceed it's income. For income tax purposes a net operating loss can be used to offset income in a prior year. An NOL can be carried back for the last 3 years […]

  • Non-taxable Distribution

    Description and Definition of Non-taxable Distribution A dividend received from a company as a return of the shareholders investment in the stock. Non-taxable distributions are tax free but you must reduce your basis in the stock by the amount of the distribution. Your gain or loss will be […]

  • Non-recourse Financing

    Description and Definition of Non-recourse Financing A debt for which a borrower is not personally liable. In case of nonpayment the creditor must foreclose on the property securing the debt. The At-Risk Rules generally disallow losses from investments with non-recourse financing but an […]

  • Non-passive Income

    Description and Definition of Non-passive Income Income such as wages, tips, profits from a business in which you materially participate, and portfolio income, such as interest and dividends. You cannot offset non-passive income with passive losses as a general rule. Resources See Also Further […]

  • Net Worth

    Net Worth means:the amount by which the fair market value of all of a corporation's assets exceed its liabilities. With respect to a collapsible corporation, its assets include the amount of any distributions in complete liquidation, and net worth does not include contributions to […]

  • Nominee Interest

    Description and Definition of Nominee Interest Interest received on behalf of another person. If your name and taxpayer identification number are on an account but all or part of the income actually belongs to someone else you must file Form 1099-DIV and the other person must report the income […]

  • Net Income

    About Net Income: In general. The sum remaining after all expenses have been met or deducted; synonymous with net earnings and with net profit or net loss (depending on whether the figure is positive or negative). Net income is gross income less deductible income-related expenses. Many […]

  • Non-resident Alien

    Description and Definition of Non-resident Alien A person who is not a U.S. citizen or a permanent resident of the U.S. Tax is generally assessed on income from U.S. sources. Resources See Also Further Reading Non-resident Alien in the West's Tax Law Dictionary Non-resident Alien in […]

  • Non-periodic Distributions

    Description and Definition of Non-periodic Distributions A payment such as a lump-sum distribution that is paid directly to an employee from an employer retirement plan. This is a 20% backup withholding rule. Resources See Also Further Reading Non-periodic Distributions in the West's Tax […]

  • Non-profit Corporations

    Description and Definition of Non-profit Corporations Corporations that were organized without a profit motive. Because most non-profit corporations are dedicated to charitable or educational efforts they are exempt from income taxes. However, they still must file an informational return. […]