Tax

Category: L

  • Loss Disallowance Rule

    Loss Disallowance Rule means:loss is disallowed on certain transactions between related parties….

  • Leasehold Improvements

    Leasehold Improvements means:fixtures attached to real estate that are generally acquired and installed by the lessee. Upon expiration of the lease, the tenant can generally remove them, provided that such action does not damage the property or conflict with the lease. For example, the cabinets,…

  • Legging-in

    Legging-in means:entering into a hedging contract after becoming the debtor or creditor under a debt instrument. Any gain or loss from legging-in is deferred until the qualifying debt instrument matures or is disposed of in the future. Former Tax Regulation (check <a href="http://lawi.us/tax-reg…

  • Last Known Address

    Last Known Address means:the address that appears on a taxpayer's most recently filed return unless the U.S. Internal Revenue Service has been given clear and concise notification of a different address. A notice of deficiency is valid only if it is sent to a taxpayer's last known address. Abele…

  • Lump-sum Purchase

    Lump-sum Purchase means:the acquisition of two or more assets for one price. For tax purposes, the acquisition price is allocated to the assets based on their relative fair market values. For example, land and a building having separate fair market values of $30,000 and $70,000, respectively, ma…

  • Low-income Housing

    Low-income Housing means:rental housing that is a dwelling unit for low- or moderate-income individuals and families. A beneficial low-income housing credit may be available….

  • Lifo Recapture

    Lifo Recapture means:recapture of the excess of first in, first out (FIFO) inventory over the LIFO inventory on a C corporation's last day before an S corporation election becomes effective. One-fourth of the additional tax caused by this LIFO recapture is paid by the due date of the last C corp…

  • Living Expenses

    Living Expenses means:reasonable and necessary expenses incurred, as a result of the loss of use or occupancy of a principal residence, to maintain the taxpayer and members of the household in accordance with customary standards of living. Examples include the cost of temporary housing, utilitie…

  • Liability Insurance

    Liability Insurance means:protection from claims arising from injuries or damage to other people or property. Liability protection is very important for motor vehicle, home, and business owners. Business liability insurance premiums are deductible….

  • Like-kind Property

    Like-kind Property means:property that qualifies for a tax-deferred exchange. IRC (check if this IRC provision is current here) § 1031….