Category: P

  • Prepaid Expenses

    The Prepaid Expenses are. amounts that are paid before the period they cover. Such expenses often include insurance and rent. Prepaid expenses are not deductible until the appropriate period. See also other Tax Terms and Definitions in U.S.A. economic performance rule. Description and […]

  • Patient Protection

    Patient Protection Act Issue You may find information about Patient Protection Act in this Tax Platform of the American Encyclopedia of Law.

  • Pension

    Description and Definition of Pension A retirement plan. Payments to employees from an employer funded retirement plan for past services rendered. Resources See Also Further Reading Pension in the West's Tax Law Dictionary Pension in "A Dictionary of Taxation"

  • 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 […]

  • Passive Income

    Description and Definition of Passive Income Income from a passive activity. You can offset a passive loss against your passive income. You cannot offset a passive loss against ordinary income. Resources See Also Further Reading Passive Income in the West's Tax Law Dictionary Passive […]

  • 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 […]

  • Points

    Points means:an upfront fee charged by a lender and intended to increase his or her overall yield. A point is 1% of the total principal amount of a loan. For example, on a $100,000 mortgage loan, a charge of three points equals $3,000. If the payment is only for the use of money, it is…

  • Payroll Tax

    Description and Definition of Payroll Tax A tax based on wages, tips, and salaries paid. Your employer deducts a certain amount from your paycheck and pays the rest of these taxes. This tax money funds many finance specific programs. Federal, state, and local governments collect payroll taxes […]

  • 1040PC

    Description and Definition of 1040PC A 1040PC is a paper tax return prepared on a computer using an IRS approved format. The 1040PC printed return does not look like a regular Form 1040, 1040A, or 1040EZ – it looks like a computer printout without the graphics. The IRS has discontinued […]

  • Preferred Stock

    Preferred Stock is. part of the capital stock of a corporation that enjoys priority over the remaining stock, or common stock, in the distribution of dividends and, in the event of dissolution of the corporation, also in the distribution of assets. Shares or stock which carry a right to a […]