Tag: PR

Pro Rata (latin legal term) means:Latin for “proportionately”; proportionately according to the fraction held by each of several owners. Example of Pro Rata: Learn more about tax examples, explanations and calculations here</a…

About Property Concept: in natural resources, each separate interest owned by a taxpayer in each mineral deposit in each separate tract or parcel of land. Former IRC (check if this IRC provision is current here) §6l4(a)….

About Prizes and Awards: forms of recognition that are generally taxable at fair market value. Exceptions are Pulitzer and Nobel Prizes, which are excluded from income. See also employee achievement award. Former IRC (check if this IRC provi…

Projected Benefit Cost Method is. one of two basic actuarial methods employed to calculate an employer's contribution to a qualified defined-benefit pension plan. This approach assumes that benefits accrue over the entire time of participation by a plan participant. See also other Tax Terms and Defi…

Premium Bond means:a bond with a selling price above the face or redemption value. A bond with a face value of $1,000, for instance, is a premium bond if it sells for $1,050. For tax purposes, the premium may be amortized on a straight-line basis over the life of the bond. When an instrument bou…

Private Activity Bond means:a bond more than 10% of whose proceeds is used in a private business use and more than 10% of whose principal (or interest) is secured by property used in a private business use. Interest income from such a bond is taxable to the bondholder. Former IRC (check <a href=…

Preparer Penalty for Understatement Due To Unrealistic Position means:a $250 penalty on a preparer who files a return knowing that a position he or she has taken does not have a realistic possibility of success if challenged administratively or litigated, and the position is not disclosed. Forme…

Preparer Penalty for Willful Or Reckless Conduct means:a $1,000 penalty on a preparer for an understatement attributable to his or her willful attempt to understate a person's tax liability, or to the preparer's reckless, or intentional disregard of the tax laws or regulations. Former IRC (check…

Probate may have one of the following meanings, depending the context of the term: 1. act of proving that an instrument purporting to be a will was signed and otherwise executed in accordance with the legal requirements for a will, and of determining its validity. 2. combined result of all procedure…

Prepayment Penalty means:a fee paid by a borrower for the privilege of retiring a loan early. A prepayment penalty on a personal loan or home mortgage is not a deductible interest expense. Example of Prepayment Penalty: Learn …