Tag: SE

Second Home means:a residence that is not the principal residence. A taxpayer may deduct interest on two personal residences provided certain residence requirements are met.v See also other Tax Terms and Definitions in U.S.A. secondary residence; vacation home; home mortgage interest. Example …

Section 6621(c) Rate means:a rate that is 2 percentage points higher than the standard underpayment rate determined under Former IRC (check if this IRC provision is current here) §6621(a)(2)….

Second-tier Subsidiary means:a taxable entity controlled by another taxable entity that is in turn controlled by a third entity (e.g., a tax-exempt organization). This arrangement is sometimes used by tax-exempt organizations to avoid unrelated business income….

Severance Tax means:a tax levied by some states on each barrel of oil or each thousand cubic feet of gas produced, as well as other minerals and forest products. A severance tax is deductible for federal income tax purposes. See also the entries Income Tax</a…

Severance Damages means:an element of value arising out of a condemnation of which a tract of land was a part. Severance damages reduce the basis of the retained property, and any excess of the severance damages over the basis is a taxable gain. See however, Former IRC (check <a href="http://law…

Section 444 Election means:an election by certain partnerships, S corporations, and personal service corporations to use a tax year other than the required one, which is an election by certain partnerships, S corporations, and personal service corporations to use a tax year other than the requir…

Self-employed Health Insurance Deduction means:an adjustment to gross income for 25% of the cost of health insurance, allowed for a self-employed individual, or a more than 2% shareholder in an S corporation, for payments made before December 31, 1993, for health insurance coverage. This deducti…

Service Center means:an U.S. Internal Revenue Service (IRS) office where tax returns are processed. Each taxpayer must send his or her tax return to the appropriate regional service center….

Secular Trust means:a variation of the irrevocable Rabbi trust arrangement used with a nonqualified deferred-compensation plan. Because the assets in a secular trust are not subject to the claims of creditors, such a trust offers an executive more security than a Rabbi trust….

Secondary Residence means:a vacation home must be used more than 14 days a year in order to qualify for deductibility. The interest and taxes paid on the residence are itemized deductions. See also other Tax Terms and Definitions in U.S.A. second home….