Tag Archives: BO

Bond

Bond

Bond means:
an obligation to pay. Most federal, municipal, and corporate bonds pay interest twice a year (semiannually). Interest on municipal bonds is generally nontaxable for federal income tax purposes and in the municipality of issue. Interest on federal government bonds is taxable for federal purposes but tax-free for state income tax purposes. Corporate bond interest is generally fully taxable. Former IRC (check if this IRC provision is current here) §§150(a)(l) and 171(d).

U.S. and other Developed Countries International Tax Meaning

Interest-bearing debt obligation to a government or entrepreneur. The rate of interest is usually fixed.

See the entries Income Tax and State Income Tax in the American Encyclopedia of Law.

Description and Definition of Bond

A written promise to repay a loan plus interest. Bonds usually have a maturity of more than one year. If you invest in bonds you will usually receive interest twice a year. Investors can buy bonds from a company or government entity, essentially loaning the company or government money. Municipal bonds are federal income tax free.

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Book Value

Book Value

Book Value means:
the value of individual assets, calculated as actual cost less allowances for any depreciation. Book value may be much more or less than current fair market value.

Example of Book Value:

Learn more about tax examples, explanations and calculations here.

X Corporation purchases a building for $100,000, then depreciates it by $10,000 on its financial statements. The book value was $100,000 and is later $90,000.

U.S. and other Developed Countries International Tax Meaning

The value of individual asset as recorded in the accounting records of a taxpayer, calculated as actual cost less allowances for any depreciation.

Description and Definition of Book Value

An accounting term which usually refers to a business' cost of assets minus liabilities. The book value of a stock is determined from a company's records by adding all assets (generally excluding such intangibles as goodwill), then deducting all debts and other liabilities plus the liquidation price of any preferred stock issued. The sum arrived at is divided by the number of common shares outstanding and the result is the book value per common share. The book value of the assets of a company generally has no significant relationship to the company's market value.

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Board of Directors

Board of Directors

Description and Definition of Board of Directors

A group of people elected by the stockholders to set overall corporate policy and supervise the corporation's executives. The Board of Directors tries to maintain the corporation in good financial health and return to the stockholders a reasonable return on their investment.

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Boot

Boot

Boot means:
unlike property included to balance the values of like properties exchanged.

Example of Boot:

Learn more about tax examples, explanations and calculations here.

In an exchange of property under Section 1031 of the Internal Revenue Code, Collins exchanges her warehouse, worth $100,000, for Baker's land, worth $125,000. Collins adds $15,000 cash and a car worth $10,000 in order to equalize the values of the properties exchanged. The car and cash are boot.

Description and Definition of Boot

The receipt of cash or its equivalent accompanying an exchange of property making the values of the property traded equal. In a tax-free exchange boot is subject to immediate tax.

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Bond Premium

Bond Premium

Bond Premium means:
the amount the purchaser pays in buying a bond that exceeds the face or call value of the bond. The premium can be amortized each year by the bondholder to reflect the fact that the true interest rate is less than the coupon rate. Amortization is elective for taxable bonds and not allowed for tax-exempt bonds. Former IRC (check if this IRC provision is current here) §171.

The amount over face value that the taxpayer pay to buy a bond paying higher than current market rates. With taxable bonds, a portion of the premium can be deducted each year that the taxpayer own the securities.

Description and Definition of Bond Premium

This is the amount over the face value of a bond that you pay to purchase a bond which is paying an interest rate that is higher than the current market rate on newly issued bonds.

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Bona Fide Foreign Resident

Bona Fide Foreign Resident

Bona Fide Foreign Resident means:
a person living in a foreign locality for an entire taxable year and meeting a number of judicial criteria. Such a person is eligible to exclude foreign- source income under Former IRC (check if this IRC provision is current here) §911(d).

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

physical presence test.

Description and Definition of Bona Fide Foreign Resident

A Bona Fide Foreign Resident is an individual who lives in a foreign country during the entire tax year and meets certain other criteria.

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Bond Adjustment

Bond Adjustment

Description and Definition of U.S. Savings Bond Adjustment

An adjustment to your taxable interest on Schedule B for any interest on U.S. Savings Bonds that you have already reported and paid tax on as the interest was earned.

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Borrower

Borrower

Borrowers Certificate Issue

You may find information about Borrowers Certificate in this Tax Platform of the American Encyclopedia of Law.