Tag Archives: PR

Prepaid Expenses

Prepaid Expenses

The Prepaid Expenses are.

amounts that are paid before the period they cover. Such expenses often include insurance and rent. Prepaid expenses are not deductible until the appropriate period.

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

economic performance rule.

Description and Definition of Prepaid Expenses

Amounts paid in advance to a vendor or creditor for goods and services. Prepaid expenses are generally treated as a current asset because payment was made in advance and the goods or services are have not been delivered.

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Principal

Principal

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

1. main party to a transaction; for example, the buyer or seller, lessor or lessee.

2. see principal amount.

Description and Definition of Principal

The amount of money owed on a loan.

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Preferred Stock

Preferred Stock

Preferred Stock is.

part of the capital stock of a corporation that enjoys priority over the remaining stock, or common stock, in the distribution of dividends and, in the event of dissolution of the corporation, also in the distribution of assets. Shares or stock which carry a right to a prior and usually fixed dividend, ahead of dividends paid to ordinary shareholders. See Section 306 Stock.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.

Description and Definition of Preferred Stock

A higher class of stock than common stock. Preferred shareholders are paid their dividends before common shareholders and have a preference claim on any assets and liquidation proceeds.

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Principal Place of Business

Principal Place of Business

Principal Place of Business means:
the place where a person conducts most of his or her business activities, where the person does business most of time. Two primary considerations in deciding whether a home office is a person's principal place of business, and therefore deductible, are (1) the relative importance of the activities performed at each business location and (2) the amount of time spent at each place. Comparative analysis may reveal that there is no principal place of business, in which case home office expenses are not deductible. Former IRC (check if this IRC provision is current here) §217.

Description and Definition of Principal Place of Business

Your main office or work location. This is determined by how much of your working time you spend there and the importance of the work done there.

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Probate Estate

Probate Estate

Probate Estate means:
the property passing by will or by operation of state intestate succession law from a decedent to his or her heirs or other beneficiaries. Probate estate may be quite different from gross estate.

Description and Definition of Probate Estate

Property held in a decedent's name passing by will or by operation of state intestate succession laws.

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Progressive Tax

Progressive Tax

Progressive Tax means:
a tax whose rate increases as the amount subject to the tax increases, thereby taxing the wealthy at a higher rate than the poor or the middle class. A tax that takes a larger percentage of income from high-income groups than from low-income groups.

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

regressive tax.

See Progressive Tax and Progressive Tax.

Description and Definition of Progressive Tax

A tax that uses higher tax rates as income increases. This type of tax takes a larger percentage of income from high income groups than from low income groups. The U.S. federal income tax system is based on a progressive tax, with rates starting at 15 percent and rising to 39.6 percent for higher income taxpayers.

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Profit sharing Plan

Profit sharing Plan

Profit sharing Plan means:
an agreement that allows employees to share in company profits. A Profit sharing plan is a contribution plan under which the amount contributed to the employee's account is based on a percentage of the employer's profits. Annual contributions are made by the company, when it has profits, to a profit- sharing account for each employee, either in cash or in a deferred plan; these contributions may be invested in stocks, bonds, or cash equivalents. If the profit-sharing plan is classified as a defined-contribution plan, the annual addition to an employee's account may not exceed the lesser of $30,000 or 25% of the employee's compensation. There is a 15% deduction limit for a defined-contribution Keogh plan. Former IRC (check if this IRC provision is current here) §401.

Description and Definition of Profit Sharing Plan

A defined contribution plan for distributing a predetermined percentage of a company's profits to its employees that are eligible to participate in the plan.

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Premium Tax Credit

Premium Tax Credit

Premium Tax Credit, I.R.S. Form 8962 Issue

You may find information about Premium Tax Credit, I.R.S. Form 8962 in this Tax Platform of the American Encyclopedia of Law.

Property Credit

Property Credit

Residential Energy Property Credit Issue

You may find information about Residential Energy Property Credit in this Tax Platform of the American Encyclopedia of Law.