Description and Definition of Restricted Stock Stock owned by an employee of a company that has limits on its transferability. If you receive restricted stock you do not need to include its value in excess of the amount you paid for it in your income. However, when the restrictions are lifted […]
Application for Recognition, § 501(C)(3) Issue You may find information about Application for Recognition, § 501(C)(3) in this Tax Platform of the American Encyclopedia of Law.
Revocable Trust means:
a trust the provisions of which may be altered as many times as the grantor pleases, or the entire trust agreement can be canceled. A revocable trust differs from an irrevocable trust, which permanently transfers assets from the estate during the grantor's […]
Myra (My Retirement Account) Issue You may find information about Myra (My Retirement Account) in this Tax Platform of the American Encyclopedia of Law.
Return of Capital means:
a distribution that is not paid out of the earnings and profits of a corporation. Rather, it is a return of the shareholder's investment in the stock of the company. A return of capital is first applied to reduce the basis of the shareholder's stock to […]
Regressive Tax means:
a tax that either (1) remains the same regardless of the amount involved, or (2) decreases as the amount to which the tax is applied increases. A tax that takes a larger percentage of income from low-income groups than from high-income groups. A regressive tax takes […]
Residential Rental Property means:
rental units used for dwelling purposes, not of a transient (hotel, motel) nature. For a building to qualify as residential, at least 80% of its income should be derived from dwelling units. This type of property is eligible for a 2772-year life for […]
Retained Earnings means:
net profits kept to accumulate in a business after dividends are paid. Retained earnings are distinguished from contributed capital. Compare with earnings and profits. See also other Tax Terms and Definitions in U.S.A. accumulated earnings tax; accumulated […]
Retirement Savings Plans Issue You may find information about Retirement Savings Plans in this Tax Platform of the American Encyclopedia of Law.
Description and Definition of Residence Interest A term referring to deductible mortgage interest on a principal residence and/or a second home. Resources See Also Further Reading Residence Interest in the West's Tax Law Dictionary Residence Interest in "A Dictionary of Taxation"
Application for Recognition of Exemption Under § 501 Issue You may find information about Application for Recognition of Exemption Under § 501 in this Tax Platform of the American Encyclopedia of Law.
Refund Direct Deposit Issue You may find information about Refund Direct Deposit in this Tax Platform of the American Encyclopedia of Law.
Description and Definition of Reimbursement Account Also called a flexible spending account or salary reduction plan that allows an employee to divert some of his or her salary to a special account that is used to reimburse the employee for medical or child-care expenses. Funds deposited in […]
Sport Fish Restoration and Boating Fund Issue You may find information about Sport Fish Restoration and Boating Fund in this Tax Platform of the American Encyclopedia of Law.
Rental Property See information about: Demolition Publication 527 Publication 925 Rental Income Rental Expenses Renting Residential and Vacation Property
Revenue Procedures Overview A revenue procedure is an official statement of a procedure that affects the rights or duties of … Read more
Revenue Rulings Overview A revenue ruling is an official interpretation by the IRS of the Internal Revenue Code, related statutes, … Read more
About Revenue Agent's Report: (also called RAR) IRS former Form (check if this Form is current here) 4549, a report of changes due to an examination by a revenue agent, which may result in a no-change, overassessment, or deficiency a…
About Reversion: giving a grantor some right or interest, to arise in the future in a property; such reversion causes the property to be included in the grantor's gross estate….
About Real Estate Investment Trust: A Real Estate Investment Trust (REIT) is a real estate mutual fund, allowed by income tax laws to avoid the corporate income tax. See Real Estate Investment Trust and Categories , R Leave a comment
About Regular Installment Method: The Regular Installment Method (estimated Tax) is a method of calculating quarterly estimated tax payments for persons whose incomes are earned ratably throughout the tax year. The total estimated tax payment required for the year is divided by 4 to determine the am…
About Reciprocal Trust Doctrine: The Reciprocal Trust (cross-trust) Doctrine is a judicial concept that switches grantors of trusts in order to prevent tax avoidance. Example of Reciprocal Trust Doctrine: Learn more about tax exam…
About Revenue Procedure: Revenue Procedure (Rev. Proc.) is an official published statement by the IRS of US about procedural and administration aspects of the tax laws. For more information about Revenue Procedure, click here. For an Categories , R Leave a comment
About Reserve Method: Reserve Method (bad Debts) is the accrual of bad-debt expense based on the projected worthlessness of accounts receivable or prior experience with uncollectible receivables. The use of the reserve method by accrual basis taxpayers is permitted only for some small banks and thri…
About Remainderperson: Remainderperson (also called “remainderman”) is the beneficiary of a trust other than the life beneficiary. The remainderperson receives the corpus after the death of the life beneficiary. See Inheritance Tax and Categories , R Leave a comment
About Related Parties: Parties defined, for purposes of disallowing a loss on the sale or trade of property between related parties, as follows: • family members (i.e., brothers, sisters, half-brothers, half-sisters, spouses, ancestors, and lineal descendants). • a corporation in which the…
About Real Estate Mortgage Investment Conduit: Real Estate Mortgage Investment Conduit (remic) was an entity whose purpose is to hold a fixed pool of mortgages and issue interests in itself to mortgage investors. A REMIC may be a partnership, corporation, trust, or separate pool of assets. REMICs ar…
About Reconstruction of Income: in the absence of adequate books and records, the calculation under U.S. Internal Revenue Service (IRS) authority, of a taxpayer's income by whatever method, will clearly reflect that income. Reconstruction …
About Residency Starting Date: generally, the first day an alien is present in the United States during a calendar year. Up to 10 days of actual presence in the United States for that year can be excluded if (1) the alien had a closer connection to a foreign country than to the United States, and (2…
About Relationship Test: for purposes of the dependency exemption, the following persons qualify as related to the taxpayer: • child, grandchild, great-grandchild, or other lineal descendant. • stepchild. • brother, sister, half-brother, half-sister, stepbrother, or stepsister. •…
Religious Organization is used. when such an association or corporation has a common or community treasury, it is tax exempt even if such association or corporation engages in business for the common benefit of the members. The members must include in their gross incomes their entire pro rata shares…
Revenue Neutrality is a legal term that is. referring to changes in the tax laws that result in no alteration in the amount of revenue coming into the government's coffers. Constraints on tax reform that it should not change revenues available to government in any significant way. For example, a pro…
Retirement Program is. one of five programs in the Social Security System under which monthly payments are made to retired workers who have enough Social Security credits. Payments may also be made to the retired worker's spouse….
Resale Price Method is. one of five methods for determining an arm's-length transaction for tangible asset transfers. This method involves subtracting the appropriate gross profit from the resale price in an uncontrolled transaction. The appropriate gross profit is determined by multiplying the resa…
Regulations are. official interpretations of the Internal Revenue Code by the U.S. Treasury Department that have the force and effect of law. In Massachusetts, Regulations (830 CMR) is Codified in Chapter 830 of the Code of Massachusetts Regulations further interpret the statutory provisions governi…
Reforestation Expenditures are. costs incurred in reforestation that are eligible for 7- year rapid amortization of up to $10,000 annually. Former IRC (check if this IRC provision is current here) §194….
Res Judicata (latin legal term) means:
Latin for “judged matter”; the concept that, once a disputed matter, such as tax liability, has been decided in court and the time to appeal has passed, the outcome is determined….
Rehabilitation Tax Credit means:
a 20% tax credit for rehabilitating certified historic structures, and a 10% credit for industrial and commercial buildings placed in service before 1936. However, the following conditions are imposed: • The credit may be used to offset a maximum of $25,000 o…
Reforestation Credit means:
a 10% tax credit for direct costs incurred in connection with forestation or reforestation. Former IRC (check if this IRC provision is current here) §48(b)….
Recapture may have one of the following meanings, depending the context of the term: 1. the taxing at ordinary rates of the part of the gain on a sale that represents prior depreciation allowances (e.g., Sections 1245 and 1250 property). See also depreciation recapture. 2. repayment of a previously …
Reserve may have one of the following meanings, depending the context of the term: 1. the nondeductible segregation of retained earnings to provide for such payouts as dividends, contingencies, improvements, or retirement of preferred stock. 2. an often deductible valuation reserve, also called allo…
Reasonable Needs of Business may have one of the following meanings, depending the context of the term: 1. reasonably anticipated needs of a business. 2. certain redemption needs with respect to a deceased shareholder or a private foundation. This concept applies to determination of the accumulated …
Replacement Period may have one of the following meanings, depending the context of the term: 1. For inventory interruption. Three tax years following the liquidation year, unless a shorter period is published in the Federal Register. Former IRC (check Categories , R Leave a comment
Refundable Credit means:
a credit or other debt instrument that is paid to a taxpayer even if the amount of the credit exceeds the tax liability (e.g., the earned income tax credit and taxes withheld on wages). A credit that is allowed even if a taxpayer does not owe any taxes nor has any income …
Receiver means:
a court-appointed person who takes possession of, but not title to, the assets and affairs of a business or estate that is in a form of bankruptcy called receivership. The receiver collects rents and other income and generally manages the affairs of the entity until a disposition …
Regulated Futures Contract means:
a contract or agreement that (1) provides that amounts must be deposited or withdrawn from a margin account based on daily market conditions (a system of marking to market) and (2) is traded on, or subject to the rules of, a qualified board of exchange. See also …
Rebuttable Presumption means:
a factual presumption that can be overturned by showing significant contradictory evidence or the happening of a certain event or certain events. If a profit is not shown in 3 out of any 5 consecutive years (2 out of 7 if horses are involved), there is a rebuttable p…
Reverse Starker Transaction means:
a like-kind exchange transaction whereby a taxpayer receives the replacement property before the date on which he or she transfers the relinquished property….
Redeemable Ground Rent means:
a ground rent payable under a freely assignable lease that is for a term in excess of 15 years, including renewal options. The leaseholder has the right to terminate the lease and, by virtue of state or local law, to acquire the lessor's entire interest in the land. …
Realized Gain means:
a gain that has occurred financially but is not necessarily taxed. Actual gain realized from the disposal of an asset. See also other Tax Terms and Definitions in U.S.A. boot; recognized gain; Section 1031. Example of Realized Gain:
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