Author: John Baer

  • 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 […]

  • Applicable Federal Rate

    Applicable Federal Rate means:an interest rate determined monthly and based on the rate paid by the federal government on borrowed funds. An AFR is provided for short-term, mid-term, and long-term debt. If a seller-financed mortgage provides a rate that is less than the AFR, interest […]

  • Trade

    Trade means:a business, profession, or occupation; but also may be a commerce transaction. A trade often implies (or may imply) a skilled handicraft, which is pursued on a continuing basis, such as carpentry. Trade or business expenses are deductible, in contrast to nondeductible […]

  • Married Filing Jointly

    Married Filing Jointly means:a filing-status option for married couples who agree to report their combined income and deductions. In a Married Filing Joint filing status, the taxpayer is married and both he/she and his/her spouse agree to file a joint return. (On a joint return, the […]

  • Medicare Tax

    Medicare Tax means:the hospital insurance portion of the tax assessed on compensation and self-employment earnings under the Federal Insurance Contributions Act. Medicare tax is an amount paid by individuals during the period in which they earn wages for purposes of providing them with […]

  • Foreign Earned Income Exclusion

    Foreign Earned Income Exclusion means:an allowed exclusion of up to $70,000 of foreign earned income by a qualifying person working abroad for at least 330 full days out of any period of 12 consecutive months. The person must have a tax home in a foreign country and meet either a bona […]

  • Gift

    Gift means:the voluntary transfer of property made without financial consideration; that is, no value is received in return. Each donor may give $10,000 annually to each donee without affecting the $600,000 lifetime exemption of property passing from an estate. Married persons may […]

  • Indirect Tax

    About Indirect Tax: A tax that can be shifted to others, such as sales taxes, VAT (in Europe and other regions) and business property taxes. See Indirect Tax in the U.S. Reference and Indirect Tax in the International reference. U.S. and other Developed Countries International Tax Meaning Tax […]

  • Disposition

    Disposition means:a transaction, such as a sale, that gives rise to a gain or loss under Former IRC (check if this IRC provision is current here) §1001. Disposable Earnings and California Tax For more information about taxes in California, click here. Description and Definition of […]

  • Marketable Securities

    Marketable Securities means:securities that are easily sold. On a corporation's balance sheet, they are assets that can be readily converted into cash for example, government securities, banker's acceptances, and commercial paper. See: Quoted securities. Description and […]