Tag: Tax Meanings
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Constructive Receipt
About Constructive Receipt: Constructive Receipt of Income is a doctrine under which a taxpayer is required to include in gross income amounts that, though not actually received, are deemed to have been received during the tax year. Thus income is constructively received when it is credited […]
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Preferred Stock
Preferred Stock is. part of the capital stock of a corporation that enjoys priority over the remaining stock, or common stock, in the distribution of dividends and, in the event of dissolution of the corporation, also in the distribution of assets. Shares or stock which carry a right to a […]
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Fiscal Year
About Fiscal Year: Fiscal Tax Year: 1. A regular fiscal tax year is a 12-month period that ends on the last day of any month except December. Former IRC (check if this IRC provision is current here) §441(f). 2. A 52/53-week fiscal tax year varies from 52 to 53 weeks and ends on a […]
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Amended Return
About Amended Return: Amended Return is revised (of the original) tax return that has been filed which needs corrections made to it. It is filed on Federal tax Form 1040X (check here if the Form is current, but this Form has been current for many years), to correct or supplement an error on a […]
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Original Issue Discount
About Original Issue Discount: Original Issue Discount (OID) is a discount from par value at the time a bond is issued. The amount by which the face value of a bond exceeds its issue price. Part of the discount on taxable bonds must be reported as taxable interest income each year that you own […]
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Transaction Taxes
About Transaction Taxes: Taxes on economic transactions, such as the sale of goods and services. Tax that uses a specific type of transaction as its object, e.g. sales tax, immovable property transfer tax, etc. These can be based on a set of percentages of the sales value (ad valorem-sales […]
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Capital Gain Distribution
Capital Gain Distribution may have one of the following meanings, depending the context of the term: 1. Mutual funds. Distributions received by mutual funds earned as capital gains retain that character when passed on to the mutual fund's investors. 2. Corporate liquidation. The difference […]
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Exemption
Exemption may have one of the following meanings, depending the context of the term: 1. a deduction allowed a taxpayer because of his or her status or circumstances rather than because of specific economic costs or expenses during the taxable year. For example, a married couple having three […]
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Tax Return
Tax Return means:a Former Federal Tax Form (check here if the Form is current) used to provide sufficient information (e.g., gross income, deductions, credits) concerning taxable income to permit the U.S. Internal Revenue Service to calculate the tax liability. To report income, […]
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Simplified Employee Pension Plan
About Simplified Employee Pension Plan: The Simplified Employee Pension (SEP) Plan is a type of pension plan to which an employer may contribute an amount not to exceed the smaller of 15% of compensation or $30,000 per individual. Former IRC (check if this IRC provision is current here) […]