Tag Archives: AM

Amended Return

Amended Return

About Amended Return:

Amended Return is revised (of the original) tax return that has been filed which needs corrections made to it. It is filed on Federal tax Form 1040X (check here if the Form is current, but this Form has been current for many years), to correct or supplement an error on a return filed during the previous three years. The Amended Return is filed as a correction or supplement to, or replacement for, the original tax return. For example, to claim a refund for a prior year's tax return. This type of return can result in owing more or extra tax or getting a refund, depending on the mistake the taxpayer had. Main Contributor: Mike Harries.

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

Claim for refund.

See Tax Forms in the Encyclopedia.

Description and Definition of Amended Return

An amended return, which is a revised tax return, may be filed on Form 1040X to correct a mistake made on an original return within three years of the original filing. An amended return can result in a refund or additional tax due.

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Amount Realized

Amount Realized

Amount Realized means:
the amount received by a taxpayer on the sale or other disposition of property. It includes the sum of cash, fair market value of any property or services received, and any debt assumed by the buyer. Former IRC (check if this IRC provision is current here) §1001(b).

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

recognized gain.

Description and Definition of Amount Realized

Amount Realized is sales proceeds plus mortgages assumed or taken subject to, less transaction expenses, such as commissions and legal costs. Amount Realized includes cash, the fair market value of property and services received, and debt assumed by the buyer.

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Amortization

Amortization

Amortization may have one of the following meanings, depending the context of the term:

1. the systematic write-off of costs incurred to acquire an intangible asset, such as patents, copyrights, and organization expenses, over its useful life. Former IRC (check if this IRC provision is current here) §197. 2. reduction of a debt by periodic charges to assets or liabilities, such as payments on mortgages or amortization of bond premiums.

Example of Amortization:

Learn more about tax examples, explanations and calculations here.

A trademark is acquired for $30,000 and has a 15-year life. The annual amortization deduction is $ 2,000.

U.S. and other Developed Countries International Tax Meaning

Process, applied in general in OCDE countries, of writing off the cost of an intangible asset over its useful life.

Description and Definition of Amortization

The term amortization has multiple meanings. It's the gradual reduction of a debt by means of equal periodic payments sufficient to meet current interest and liquidate the debt at maturity. It's also an expense allowed as a means of spreading the cost of an intangible asset over a period of years.

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Amortizable Bond Premium

Amortizable Bond Premium

Description and Definition of Amortizable Bond Premium

An Amortizable Bond Premium is the amount paid over the face value of the bond. You reduce your taxable bond interest by your bond premium amortization amount each year until the bond matures.

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American Housing Rescue and Foreclosure Prevention Act of 2008

American Housing Rescue and Foreclosure Prevention Act of 2008

On July 26, 2008, Congress passed the American Housing Rescue and Foreclosure Prevention Act of 2008. President Bush signed the measure into law on July 30.

The legislation, H.R. 3221, the American Housing Rescue and Foreclosure Prevention Act, would help stem the tide of foreclosures, stabilize local housing markets and provide incentives for first-time homebuyers. Chairman Rangel, a longtime advocate and leader for improved access to low-income housing was the author of the tax provisions contained in the bill.

“This bill received strong bipartisan support because it is the right thing to do for our country during this economic downturn,” said Chairman Rangel. “Provisions in this bill represent the most significant expansion and improvement of tax programs designed to provide affordable housing for low and moderate-income individuals since the inception of the low-income housing tax credit in 1986.”

“First, the bill would expand and improve the low-income housing tax credit, which is the largest source of federal support for the construction and rehabilitation of affordable housing,” continued Rangel. “Second, the bill increases volume limits on housing bonds to finance low-income rental housing and first-time homebuyers, while also providing states with greater flexibility on how to use those bonds efficiently. These improvements will go a long way to address the shortage of affordable housing options in our cities and towns.”

  • The Low-Income Housing Tax Credit (LIHTC) has been responsible for the development of over 2 million rental units across the nation since its inception in 1986.
  • The LIHTC is the most successful, longest running Federal program for supporting the development of affordable rental housing.
  • Included in the package is a ten percent increase in the credits allocated among states, and an $11 billion increase in tax exempt bond authority to support single family and rental housing, as well as many changes in the tax code to make the use of the LIHTC more efficient. Housing advocates agree these changes will result in additional units of housing and, especially, more units for lower-income families.
  • Also included in the package is a provision to enable cities and towns to more efficiently use tax-exempt bonds in the effort to develop affordable rental housing. The provisions will enable New York City to issue significantly more bonds so that it can support the development of thousands more rental units for low-and moderate-income families.

Below are the main tax provisions included in H.R. 3221:

  • First-time homebuyer tax credit to assist in making a down payment on a home. This would provide individuals and families with a refundable credit (equivalent to an interest-free loan) of ten percent of the purchase price of their home (up to $7,500). Taxpayers would be required to repay any amount received under this provision to the government over 15 years in equal installments. The credit is phased out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return).
  • Additional standard deduction for real property taxes to help homeowners who claim the standard deduction by allowing them to claim an additional standard deduction of up to $500 ($1,000 for joint filers) for State and local real property taxes. This provision applies for tax year 2008.
  • Temporary increase in low-income housing tax credit and simplification of the credit. The bill would increase the current limit of the credit from $2.00 for each person residing in a state by an additional ten percent. This will help put builders to work to create new options for families seeking affordable housing alternatives. The credit will also be simplified to improve its effectiveness.
  • Temporary increase in mortgage revenue bonds The bill would also allow for the issuance of an additional $11 billion of tax-exempt bonds to refinance sub-prime loans, provide loans to first-time homebuyers and to finance the construction of low-income rental housing.

This legislation is supported by a broad group of advocates for affordable housing.

Source: House Ways and Means Committee
Supporting Documents

Housing Assistance Act – Related Article

Alternate Names
This bill is referred in a number of ways. In the legislation, it’s called the “Housing and Economic Recovery Act of 2008” but after it became PL 110-289, it’s often referred to in the related guidance as the “Housing Assistance Tax Act of 2008,” or simply the “housing assistance act.”

American Institute of Certified Public Accountants

American Institute of Certified Public Accountants

American Institute of Certified Public Accountants means:
an organization, headquartered in New York, whose members are certified public accountants (CPAs). The AICPA prepares the CPA examination and provides educational and newsworthy information to its members. CPAs may prepare tax returns, represent taxpayers during U.S. Internal Revenue Service (IRS) audits, and be called upon for analysis of more complex tax issues.

American Employer

American Employer

American Employer means:
an individual who is a resident of the United States (including the Commonwealth of Puerto Rico and the U.S. Virgin Islands); a partnership in which two-thirds or more of the partners are residents of the United States; a trust in which all the trustees are residents of the United States; a corporation organized in the United States. Former IRC (check if this IRC provision is current here) §§3121(h) and 3306(j)(3).

American Federal Tax Reports

American Federal Tax Reports

American Federal Tax Reports means:
(in the case of the Second Series) bound volumes previously published by Prentice-Hall, Inc., and later issued by Research Institute of America (RIA). Tax decisions other than U.S. Tax Court decisions were available weekly from RIA, and at regular intervals these decisions were compiled into the bound volumes of AFTR 2d and sold to the public.

American Federal Tax Reports means:
a tax-case reporter previously published by Prentice-Hall. The American Federal Tax Report series was later owned by Research Institute of America.