Tax

Author: John Baer

  • Earned Income

    Earned Income means:a tax term describing "sweat of the brow" income, which requires obvious effort on the part of the recipient. This includes all income generated by providing goods or services, especially wages and salaries but also net profit from a trade or business; it is […]

  • Basis

    Basis means:an amount usually representing the taxpayer's cost in acquiring an asset. It is used for a variety of tax purposes, including computation of gain or loss on the sale or exchange of the asset and depreciation with respect to the asset. Former IRC (check if this IRC […]

  • Capital Expenditure

    Capital Expenditure means:an improvement (as distinguished from a repair) that will have a life of more than 1 year. Capital expenditures are generally depreciated or depleted over their useful life, as distinguished from repairs, which are subtracted from the income of the current year. […]

  • Dependent

    Dependent means: any person with respect to whom a taxpayer can claim a dependency exemption; defined by the Internal Revenue Code as any individual supported by the taxpayer who is related to the taxpayer in specified ways or who makes his principal abode in the taxpayer's household. A […]

  • Easement

    The Easement are. payment received for granting an easement (specific limited use or enjoyment) is usually considered to be from the sale of an interest in real property. The amount received reduces the basis of the affected part of the property. If the amount received exceeds the basis of the […]

  • 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. Resources See Also […]

  • Self-Employment Tax

    Self-employment Tax means: a provision for Social Security (old-age, survivor's and disability insurance) and Medicare hospital insurance for self-employed individuals.Self-employment tax is similar to Social Security and Medicare taxes. It is an amount of tax paid by a taxpayer who is […]

  • Testamentary Trust

    Testamentary Trust means:a trust created by a will, as distinguished from an inter vivos trust, which is created during the lifetime of the grantor. Description and Definition of Testamentary Trust A trust created by a will. Resources See Also Further Reading Testamentary Trust in the […]

  • Asset

    Asset means:anything owned that has value; any interest in real property or personal property that can be used for payment of debts. Assets are listed on Schedule L of the corporate tax return. See Corporate Tax in the U.S. Legal Encyclopedia and Corporate Tax in the International Legal […]

  • Annuity

    Annuity means:a contract or agreement sold by commercial insurance companies that pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person (the annuitant), for the lives of two or more persons, or for another specified period of time. No income is […]