Tax

Category: P

  • Pretax Rate of Return

    Pretax Rate of Return means:the yield or capital gain on a particular security before taking into account an individual's tax situation. See also Capital Gain in the American Legal Encyclopedia and Capital Gain i…

  • Present Interest

    Present Interest means:the unrestricted right to the immediate use, possession, or enjoyment of property or the income from property….

  • Phase-in

    Phase-in means:the system whereby Social Security benefits are taxed as the incomes of elderly recipients increase (the counterpart of the phase-out of deductions)….

  • Par Value

    Par Value means:the stated value of a negotiable instrument, stock, or bond, as opposed to its actual value on the open market. Assigned value printed on a share certificate. Face value….

  • Prudent Man Rule

    Prudent Man Rule means:the standard adopted by the U.S. Internal Revenue Service and some U.S. states to guide persons with responsibility for investing the money of others. Such fiduciaries (executors of wills, trustees, bank trust departments, and administrators of estates) must act as a prude…

  • Phase-outs

    Phase-outs means:the reduction or elimination of various tax benefits and detriments as a taxpayer's income exceeds specified levels. Examples of phase-outs are the child care credit, credit for the elderly or disabled, earned income credit, rental housing loss deduction, and the deduction for i…

  • Phase-out of Personal Exemptions

    Phase-out of Personal Exemptions means:the reduction in personal exemptions as income rises. Taxpayers whose Adjusted Gross Incomes (AGIs) exceed a prescribed threshold must reduce or eliminate the deductions for personal exemptions to which th…

  • Piercing the Corporate Veil

    Piercing the Corporate Veil means:the process of imposing liability for corporate activity, in disregard of the corporate entity, on a person or entity other than the offending corporation itself. There are times when the court will ignore the corporate entity and strip the organizers and manage…

  • Priority of Tax Lien

    Priority of Tax Lien means:the priority of a federal tax lien for nonpayment of taxes over most other liens. However, a federal tax lien is not valid against any purchaser, holder of a security interest, mechanic's lien, or judgment lien creditor until the tax lien has been properly recorded. Fo…

  • Proven Property

    Proven Property means:the principal value of an oil or gas property, demonstrated by prospecting, exploration, or discovery work. A development well would be proven property, but not a wildcat well. If proven property is transferred, the percentage depletion method is disallowed to the transfere…