Tax

Tag: Tax Definitions

  • Master Limited Partnership

    Master Limited Partnership means:a limited partnership in which partnership interests are issued to a "master" limited partner who arranges the sale of the partnership units to the public. Similar to regular limited partnerships, but MLPs shares are traded on the major […]

  • Collectible

    Collectible means:a rare object collected by investors. Examples are stamps, coins, Oriental rugs, antiques, baseball cards, and photographs. Collectibles typically rise in value during inflationary periods. Collectibles are not valid investments for individual retirement accounts or […]

  • Spousal Ira

    Spousal Ira means:an individual retirement account created in the name of a nonworking spouse. The maximum contribution is $2,250 per couple, as compared with a $2,000 limit per working individual. The $2,250 may be divided between the spouses' separate IRA accounts according to […]

  • Tax Home

    Tax Home means:a taxpayer's regular place of business or post of duty, regardless of where the taxpayer maintains a family home. A taxpayer's regular place of business or post of duty, regardless of where the taxpayer a family home. A tax home includes the entire city or general […]

  • Five-year Averaging

    Five-year Averaging Five-year Averaging means:a method of calculating income tax on a lump-sum distribution from a qualified benefit plan that reduces a beneficiary's tax liability on the distribution. This method is available only to participants who were 50 years of age or older […]

  • Joint Return

    Joint Return means:a tax return filed by a husband and wife, setting forth tax information concerning each of them, and computing a combined tax liability. Taxable income is calculated with progressive rates based on the assumption that the couple's income is earned equally by the […]

  • Inflation

    Inflation means:a rise in the prices of goods and services, as happens when spending increases relative to the supply of goods on the market-in other words, too much money is chasing too few goods. Inflation constitutes a silent tax increase because taxpayers are pushed into higher tax […]

  • Underpayment Penalty

    Underpayment Penalty means:a penalty that is assessed if total withholding and estimated tax payments are less than 90% of current-year actual tax liability. The rate is pegged to the federal short-term rate in effect during the third month following the tax year of underpayment. In […]

  • Sales Tax

    Sales Tax means:a percentage tax imposed on the retail sale of certain items. A tax on retail products based on a set percentage of retail cost.Most sales taxes, which are based on the value of the item sold, are regressive taxes. They are a major source of revenue for most states and […]

  • Innocent Spouse Rule

    Innocent Spouse Rule means:an exception to the general rule that both spouses are jointly and severally liable for the tax liability on a joint return. Under certain circumstances, an innocent spouse does not have joint tax liability. Four requirements must be met for a spouse to obtain […]