Author: John Baer
-
Mutual Fund
Mutual Fund means:a type of regulated investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. Mutual fund is a regulated investment company generally created by pooling funds of investors to allow them to […]
-
Passive Activity
Passive Activity means:a term introduced by the Tax Reform Act of 1986; generally, any rental activity is considered passive, as is any other activity in which the investor does not materially participate. With certain exceptions, losses generated by passive activities may not be used to […]
-
Mid-quarter Convention
Mid-quarter Convention means:a convention whereby property is deemed to be placed in service at the midpoint of a quarter for depreciation purposes. In general, business property is depreciated under a midyear rule that allows half a year's depreciation for the first year, whether […]
-
Social Security Number
Social Security Number means:an identifying number for the individual that is furnished by the Social Security Administration rather than the U.S. Internal Revenue Service. A social security number is required for every individual taxpayer and dependent. It is the counterpart of the […]
-
Unstated Interest
Unstated Interest is used. when no interest or low interest is provided in an installment sale the agreement, the part of each payment that will be treated as interest, is referred to also as unstated or imputed interest. When the stated interest on a sales contract is less than the applicable […]
-
Defined-contribution Plan
Defined-contribution Plan Defined-contribution Plan means:a deferred retirement plan that provides a separate account for each person covered by the plan; contrast with the entry with defined-benefit pension plan. Future benefits are based only on amounts contributed to or allocated to […]
-
Group Life Insurance
Group Life Insurance means:a basic employee benefit Under which an employer buys a master policy and issues to employees certificates denoting participation in the plan. Group life is also available through unions and associations. It is usually issued as yearly renewable term insurance […]
-
Value
Value may have one of the following meanings, depending the context of the term: 1. worth of all the rights arising from ownership. 2. the quantity of one thing that will be given in exchange for another. A piece of property may have a certain value to its owner (value in use) equal to the…
-
Gift Tax
Gift Tax means:a graduated excise tax levied on the donor of a gift by the federal government and most state governments when assets are passed from one person to another. To prevent people from avoiding the estate tax by giving their property away, the law includes a gift tax. A […]
-
Carryback
Carryback means:a process by which the deductions or credits of one taxable year that cannot be used to reduce tax liability in that year are applied against a tax liability in an earlier year or years. Former IRC (check if this IRC provision is current here) §1212. See also other […]