Tag: Tax Meanings

  • Gift Tax

    Gift Tax means:a graduated excise tax levied on the donor of a gift by the federal government and most state governments when assets are passed from one person to another. To prevent people from avoiding the estate tax by giving their property away, the law includes a gift tax. A […]

  • Principal

    Principal may have one of the following meanings, depending the context of the term: 1. main party to a transaction; for example, the buyer or seller, lessor or lessee. 2. see principal amount. Description and Definition of Principal The amount of money owed on a loan. Resources See Also […]

  • Annuity

    Annuity means:a contract or agreement sold by commercial insurance companies that pays a monthly (or quarterly, semiannual, or annual) income benefit for the life of a person (the annuitant), for the lives of two or more persons, or for another specified period of time. No income is […]

  • Trust

    About Trust: A trust is a legal arrangement whereby the owner of property (i.e. settlor) transfers ownership to a person(s) (i.e. trustee) who is to hold and control the property according to the owner's instructions, for the benefit of a designated person or persons (i.e. the […]

  • Taxpayer Identification Number

    About Taxpayer Identification Number: The Taxpayer Identification Number (TIN) is an identifying number assigned to a taxpayer. In some countries, like in the United States, taxpayers are given an identification number which must be used when filing a tax return and assessing taxes and for all […]

  • Unearned Income

    About Unearned Income: Unearned Income (or unearned revenue) is the investment income from sources other than trade or business, wages, salaries, tips, and other employee compensation. Interest, dividends, royalties, and capital gains may be called unearned income. In general, payments […]

  • Generally Accepted Accounting Principles

    About Generally Accepted Accounting Principles: Generally Accepted Accounting Principles (GAAP) are conventions, rules, and procedures that define accepted accounting practice, including broad guidelines as well as detailed procedures. Tax law frequently requires different treatment for an […]

  • Stock Option

    Stock Option may have one of the following meanings, depending the context of the term: 1. the right to purchase or sell a stock at a specified price within a stated period. Options are a popular investment medium, offering an opportunity to hedge positions in other securities, to speculate in […]

  • Incentive Stock Option

    About Incentive Stock Option: The Incentive Stock Option (ISO) is an equity-type compensation plan under which qualifying stock options are free of tax at the date of grant and the date of exercise but are taxed when sold. Only $100,000 of ISOs can be exercised in one year, and a number of […]

  • Married Filing Separately

    Married Filing Separately means:a filing status option for married couples in which each spouse wishes to be responsible only for his or her individual tax return. In noncommunity property states, each taxpayer would report only his or her own income and deductions. In community property […]