Tag: AV

  • Averaging

    Description and Definition of Averaging If you receive a lump-sum distribution from a pension plan you can elect either five year or ten year averaging on Form 4972 if you were born before 1936 or are 591/2 or over provided you participated in the plan for at least five years. Resources See […]

  • Average Benefit Test

    Average Benefit Test means:a two-part test to determine whether a qualified retirement plan is discriminatory. Former IRC (check if this IRC provision is current here) §4l0(b)(2)….

  • Average Daily Production

    Average Daily Production means:a taxpayer's aggregate production of domestic crude oil or natural gas during the taxable year divided by the number of days in that year. The independent producers' and royalty owners' exemption for percentage depletion method is based on a maximum of 1,000 barrel…

  • Avoided-cost Method

    Avoided-cost Method means:the method required under uniform capitalization rules for capitalizing interest into the cost of manufactured or produced property. The avoided-cost method concerns the allocation of interest incurred on debt that is not directly traceable to the property's cost of pro…

  • Avoiding Probate

    Avoiding Probate means:the use of certain techniques to eliminate assets from the legal probate process. Jointly held property, living trusts, and lifetime giving are some ways to avoid probate. Avoiding probate does not enable a person to avoid the federal estate or gift tax….

  • Average Tax Rate

    Average Tax Rate means:the rate obtained when total taxes paid are divided by income. It indicates the amount of tax paid per dollar earned. See Tax Rate and Tax Rate….

  • Avoidance of Tax

    Avoidance of Tax means:a method by which a taxpayer legally reduces his or her tax liability, for example, by investing in a tax shelter. Avoidance is a term that is difficult to define but which is generally used to describe the arrangement of a taxpayer's affairs that is intended to reduce his…