Tax

Tag: Tax Definitions

  • Mutual Fund

    Mutual Fund means:a type of regulated investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. Mutual fund is a regulated investment company generally created by pooling funds of investors to allow them to […]

  • Passive Activity

    Passive Activity means:a term introduced by the Tax Reform Act of 1986; generally, any rental activity is considered passive, as is any other activity in which the investor does not materially participate. With certain exceptions, losses generated by passive activities may not be used to […]

  • Social Security Number

    Social Security Number means:an identifying number for the individual that is furnished by the Social Security Administration rather than the U.S. Internal Revenue Service. A social security number is required for every individual taxpayer and dependent. It is the counterpart of the […]

  • Carryback

    Carryback means:a process by which the deductions or credits of one taxable year that cannot be used to reduce tax liability in that year are applied against a tax liability in an earlier year or years. Former IRC (check if this IRC provision is current here) §1212. See also other […]

  • Earned Income

    Earned Income means:a tax term describing "sweat of the brow" income, which requires obvious effort on the part of the recipient. This includes all income generated by providing goods or services, especially wages and salaries but also net profit from a trade or business; it is […]

  • Basis

    Basis means:an amount usually representing the taxpayer's cost in acquiring an asset. It is used for a variety of tax purposes, including computation of gain or loss on the sale or exchange of the asset and depreciation with respect to the asset. Former IRC (check if this IRC […]

  • Self-Employment Tax

    Self-employment Tax means: a provision for Social Security (old-age, survivor's and disability insurance) and Medicare hospital insurance for self-employed individuals.Self-employment tax is similar to Social Security and Medicare taxes. It is an amount of tax paid by a taxpayer who is […]

  • Testamentary Trust

    Testamentary Trust means:a trust created by a will, as distinguished from an inter vivos trust, which is created during the lifetime of the grantor. Description and Definition of Testamentary Trust A trust created by a will. Resources See Also Further Reading Testamentary Trust in the […]

  • Zero Coupon Bond

    Zero Coupon Bond means:a security that makes no periodic interest payments but instead is sold at a deep discount from its face value. Long-term bond on which interest is not payable on a regular basis, but rather upon maturity of the bond. The buyer of such a bond receives the rate of […]

  • Alien

    Alien means:a person who is not a citizen of the country in which he or she lives. Former IRC (check if this IRC provision is current here) §7701 (b). See also other Tax Terms and Definitions in U.S.A. nonresident alien and resident alien. Tax Treatment of Alien in the U.S. and […]