Tax

Tag: PA

  • Payroll Deduction

    Payroll Deduction means:a reduction of the amount paid to a worker from the gross amount earned. Reductions are made for taxes, voluntary savings or pension contributions, union dues, and insurance premiums. The paycheck reflects gross pay less these payroll deductions. See <a href="http://lawi….

  • Passive Investment Income Penalty Tax

    Passive Investment Income Penalty Tax means:a tax imposed on the excess passive activity income of an S corporation that has accumulated earnings and profits. from Subchapter C years. The highest corporate rate is applied to the S corporation's excess net passive income, as follows: Passive inve…

  • Payroll Savings Plan

    Payroll Savings Plan means:an arrangement between employer and employee whereby a specified amount of money is deducted from the employee's pay and invested for him or her in stocks, bonds, or other investments. The full salary is ordinarily taxable, though deductions are allowed for qualified p…

  • Patent

    Patent means:an intangible asset that may be amortized over a 15-year period. Form of intellectual property. The inventor of a new article or process usually registers his invention with a government department which confers on him the sole right (known as a patent right) to use the invention fo…

  • Partial Liquidation

    Partial Liquidation means:distributions from a corporation to corporate and noncorporate shareholders, which may receive capital gain treatment. To qualify, a distribution to a corporate shareholder must be one of a series of distributions in redemption of all of the stock of the corporation pur…

  • Payee Statement

    Payee Statement means:any of a multitude of required tax information statements indicating an amount paid to a payee. Some examples are those that report income from securities brokers, tip income, income tax withheld from employees' wages, and mortgage interest payments. The forms used for this…

  • Paid-in Capital

    Paid-in Capital means:the capital received by a corporation from investors for stock, as distinguished from capital generated by earnings or donated. The capital received by a corporation from investors for stock, as distinguished from capital generated by earnings or donated. Paid-in capital ma…

  • Passive Activity Credit

    Passive Activity Credit means:the amount by which the sum of a taxpayer's allowable credits from passive activities exceeds the portion of his or her regular income tax liability for the year that is attributable to passive activities. A portion of the disallowed credits must be allocated ratabl…

  • Passive Activity Loss

    Passive Activity Loss means:since the Tax Reform Act of 1986, income (loss) generated by rental real property and businesses in which the taxpayer does not materially participate. With certain exceptions, passive losses may not offset active or portfolio income. Former IRC (check <a href="http:/…

  • Passive Investment Income

    Passive Investment Income means:the gross receipts of an S corporation derived from royalties, rents, dividends, interest income, annuities, and gains from sales and exchanges of stocks and securities. Former IRC (check if this IRC provi…