Tax

Tag: PO

  • Points

    Points means:an upfront fee charged by a lender and intended to increase his or her overall yield. A point is 1% of the total principal amount of a loan. For example, on a $100,000 mortgage loan, a charge of three points equals $3,000. If the payment is only for the use of money, it is…

  • Power of Attorney

    About Power of Attorney: Power Of Attorney (POA) is an instrument by which one person, as principal, appoints another as his or her agent and confers upon this individual the authority to perform certain specified acts or kinds of acts on behalf of the principal. Instrument in writing by which […]

  • Portfolio Income

    Portfolio Income means:income that includes interest, dividends, royalties, and gains and losses from investments, but not passive activity investments. The concept, introduced by the Tax Reform Act of 1986, distinguishes passive, active, and portfolio income. Passive losses generally […]

  • Pool of Capital Doctrine

    About Pool of Capital Doctrine: doctrine that personal services contributed to the acquisition, exploration, and development of mineral properties in exchange for an economic interest are not taxable because they are similar to investing money for the development of the property. The taxpayer recogn…

  • Possessions Corporation

    About Possessions Corporation: Possessions Corporation (section 931) was a corporation subject to low effective tax rates in Guam, American Samoa, and the Northern Mariana Islands. Possessions Corporation (section 936) was a corporation subject to low effective tax rates in Puerto Rico and the Virgi…

  • Possessions Tax Credit

    Possessions Tax Credit means:a credit or other debt instrument that may be claimed by domestic corporations with business operations in U.S. possessions. Under Section 936, they may elect to eliminate the U.S. tax on certain income related to their possession-based operations. The credit spares …

  • Political Contribution

    Political Contribution means:a contribution to a political party or candidate; this is not deductible. Former IRC (check if this IRC provision is current here) § 162(e)….

  • Pour-over Method

    Pour-over Method means:a method of implementing an estate plan whereby the decedent's will instructs the executor to collect all of the probate assets and to pay all debts, expenses, and taxes. Next, the executor transfers, or pours over, all remaining assets into a trust. This is sometimes refe…

  • Poison Pill Rights Plan

    Poison Pill Rights Plan means:a plan that allows a shareholder of a potential takeover target to acquire its stock at a discount upon certain designated trigger events. The adoption of such a plan is not a currently taxable event, but the rights become taxable when the plan is triggered and the …

  • Pooled Income Fund

    Pooled Income Fund means:a trust established by a public charity that enables a donor to make a deferred charitable gift to the charity. This creates a future interest similar to a charitable remainder annuity trust, except that the donor's irrevocable gifts are commingled with similar contribut…