Net Worth Method

Net Worth Method means:
an indirect method the U.S. Internal Revenue Service uses to determine the taxable income of a taxpayer when the U.S. Internal Revenue Service (IRS) suspects unreported income. Any increase or decrease in a person's net worth during the year, adjusted for nondeductible expenditures and nontaxable income, is presumed to be taxable income.

Net Worth Tax in the U.S. and other Developed Countries International Tax Meaning

Many European countries impose the net worth tax in the context of property taxation. The taxable base for resident taxpayers is normally the taxpayer's worldwide net worth, i.e. total assets less liabilities along with deductions and exemptions specially allowed by tax laws.

See Property Tax in the American Legal Encyclopedia and Property Tax in the World Legal Encyclopedia.

See Tax exemption and Tax exemption.