Tax

Category: D

  • Debt-to-equity Ratio

    Debt-to-equity Ratio means:total liabilities divided by total shareholders' equity. This ratio shows to what extent owners' equity can cushion creditors' claims in the event of liquidation. A high debt-to-equity ratio may indicate that a company is a thin corporation. Former IRC (check <a href="…

  • Depreciate

    Depreciate means:to systematically write off the cost of an asset over a period of time allowed by tax law. See Depreciation in the United States Encyclopedia of Law and Depreciation in the World Encyclopedia of …

  • Divisive Reorganization

    Divisive Reorganization means:the transfer of all or part of a division, a subsidiary, or a corporate segment in a tax-free manner. There are three types of divisive reorganizations in which all or part of the assets are transferred to one or more controlled corporations: split-up, split-off, an…

  • Depreciation Allowance

    Depreciation Allowance means:the total depreciation deducted against property used in a trade or business or held for the production of income; also called accumulated depreciation. Depreciation permits an annual deduction for wear and tear and diminution of the property. See <a href="http://law…

  • Donee

    Donee means:the recipient of a gift; a person who takes without giving consideration; a person who is given a power, right, or interest….

  • Deep Rock Doctrine

    Deep Rock Doctrine means:the principle that shareholder loans to a corporation are not given equal priority with loans made by outside creditors; that is, shareholder loans are subordinated to outside creditor loans. The deep rock doctrine is based on the premise that shareholder loans may appea…

  • Deferral of Taxes

    Deferral of Taxes means:the postponement of tax payments from the current year to a later year. For example, delaying the receipt of income to a subsequent year can postpone payment of taxes, or like-kind exchanges may postpone taxes on a gain until the new property is sold. Deferring taxes is w…

  • Dicta

    Dicta means:the plural of dictum….

  • Death Benefits

    The Death Benefits are. payments to a deceased employee's surviving spouse or children, which are tax-free up to a total of $5,000 (i.e., $5,000 automatic exclusion). Any excess over $5,000 may be considered gift income and hence taxable. This exclusion does not apply to a decedent's accrued salary….

  • Delay Rentals

    The Delay Rentals are. payments by a lessee to a lessor to delay the drilling of an oil well. The lessor reports the delay rentals as ordinary income not subject to depletion, and the lessee may expense or capitalize such payment….