Tax

Category: N

  • Nondealer

    Nondealer is. one who is not a dealer, as defined in Former IRC (check if this IRC provision is current here) §453(1)(1). A nondealer may use the installment method and recognize gain over the years in which payments are received….

  • Nonstatutory Option

    Nonstatutory Option means:a category that includes nonqualified options and restricted property. Contrast with statutory options….

  • Nonbusiness Bad Debt

    Nonbusiness Bad Debt means:a bad debt in which the obligation was not generated by activities involving a trade or business, but perhaps by a personal loan. A bad debt not connected with the taxpayer trade or business. An uncollectible loan to a friend of the the taxpayer or a deposit to a contr…

  • Negligence Penalty

    Negligence Penalty means:a 20% accuracy-related penalty based on the portion of an understatement attributable to negligence. Former IRC (check if this IRC provision is current here) §6653….

  • Nonbusiness Income

    Nonbusiness Income may have one of the following meanings, depending the context of the term: 1. income from passive sources such as interest and dividends, along with nonbusiness capital gains in excess of nonbusiness capital losses. This concept is used to calculate the net operating loss deductio…

  • Notional Principal Contract

    Notional Principal Contract means:a derivative contract that provides for periodic payments from one taxpayer to another, calculated by reference to a specified index upon a notional principal amount, in exchange for specific consideration or a promise to pay similar amounts. Former Tax Regulati…

  • Nonqualified Deferred-compensation Plan

    Nonqualified Deferred-compensation Plan means:a deferred-compensation plan established to defer income beyond an employee's peak income years. The tax treatment of such a plan depends on whether the plan is funded or unfunded and whether it is forfeitable or nonforfeitable. If it is unfunded, th…

  • Net Operating Loss Deduction

    Net Operating Loss Deduction means:a deduction in one tax year of a net operating loss (NOL) generated in another year. A NOL from a prior year may be shown as a deduction on the current year's tax return. Net operating losses from the taxpayer business generally are carried back for two years (…

  • Nonrecourse Debt

    Nonrecourse Debt means:a debt for which an individual has no personal liability. For example, a lender may take the property pledged as collateral to satisfy a debt, but has no recourse to other assets of the borrower. The at-risk rule bars claiming tax losses beyond equity contributions where t…

  • Nonrefundable Credit

    Nonrefundable Credit means:a credit or other debt instrument that is not paid to the taxpayer if it exceeds his or her tax liability (e.g., targeted jobs credit, low-income housing credit). When the amount of a credit is greater than the tax owed, taxpayers can only reduce their tax to zero; the…