Tag Archives: IM

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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Imputed Interest

Imputed Interest

Imputed Interest means:
implied interest. In a mortgage that states an insufficient interest rate, tax law will impute a higher rate and a lower principal, which will increase taxes on the receipt of payments. Interest the taxpayer are considered to have earned – and therefore owe tax on – if the taxpayer make a below-market-rate loan. The imputed interest is based on the difference between the rate the federal government pays on new borrowings and the interest charged on the loan. The term is also used to refer to the interest income the taxpayer must report on taxable zero-coupon bonds. Although the bonds pay no interest until maturity, the taxpayer must report and pay tax on the interest as it accrues.Former IRC (check if this IRC provision is current here) §7872.

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

applicable federal rate; original issue discount.

U.S. and other Developed Countries International Tax Meaning

Implied interest. In a mortgage that states an insufficient interest rate, tax law will impute a higher rate and a lower principal, which will increase taxes on the receipt of payment.

Description and Definition of Imputed Interest

If you make a below market rate loan this is interest the IRS deems has been paid on the loan regardless of what you received. The imputed interest rate is the Applicable Federal Rate.

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Improved Land

Improved Land

Improved Land means:
land that has some improvements; that is, land that has been partially or fully developed for use. Any of the following activities applied to a piece of raw land will result in improved land:

• landscaping and grading.

• installation of utilities.

• construction of roads, curbs, and/or gutters.

• construction of buildings.

Before land is improved, it may be considered a capital asset.

Improvement

Improvement

Improvement means:
any permanent, fixed development of land or buildings through expenditure of money or labor that more than merely replaces, repairs, or restores the original condition and that tends to increase the value of the property. Improvements are normally not deductible for tax purposes, but are capitalized and, if made to depreciable property, are depreciable over the same life as the asset that was improved.

Impairment-related Expenses

Impairment-related Expenses

Impairment-related Expenses means:
work expenses related to a person's disability. One of the Social Security disability program's incentives for encouraging disabled workers to return to work is to discount impairment-related expenses when it is determined that a disabled worker's earnings constitute substantial work. Former IRC (check if this IRC provision is current here) §67(d).

Imputed Income

Imputed Income

Imputed Income means:
the economic benefit a taxpayer obtains through performance of selfprovided services or through the use of self-owned property. In general, imputed income is not subject to income taxes. For example, if a taxpayer who is a plumber repairs a toilet in his own home, such repair service is not subject to tax.

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

imputed interest.

U.S. and other Developed Countries International Tax Meaning

The economic benefit a taxpayer obtains through performance of self-provided services or through the use of self-owned property.

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