Tag: Tax Meanings
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Limited Partner
About Limited Partner: Limited (special) Partner is, within a limited partnership, a part owner whose liability is limited to the amount invested and whose role in business management is restricted. Tax law generally treats income or loss from limited partnerships as passive income (loss), […]
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Tax Bracket
About Tax Bracket: Each tax bracket in the United States encompasses a certain amount of income to be taxed at a set rate. The tax rates in 2010 did run from 10% to 35%. Taxpayers are said to be in the 25% bracket if their highest dollar of income falls in that bracket. If taxpayers…
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At-risk Rules
At-risk Rules About At-risk Rules: See in the American Legal Encyclopedia Description and Definition of At-Risk Rules The At-Risk Rules limit your loss deductions to the actual amount you are at risk for, including promissory notes on which you are personally liable. There is an exception for […]
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Qualified Domestic Relations Order
Qualified Domestic Relations Order means:a domestic relations order made in accordance with state domestic relations laws for alimony, child support, or the settlement of marital property rights. Former IRC (check if this IRC provision is current here) §4l4(p). Description and […]
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Tax Credit
Tax Credit means: a dollar-for-dollar reduction in the amount of tax that a taxpayer owes. Unlike deductions or exemptions, which reduce the amount of income subject to tax, a tax credit reduces the actual amount of tax owed. In other words, a reduction in the tax that can be deducted […]
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Credit
Credit may have one of the following meanings, depending the context of the term: 1. for taxes, a dollar-for-dollar reduction in a person's tax liability. See also specific credits, including child and dependent care credit; investment tax credit; low- income housing credit. 2. in […]
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Fair Market Value
About Fair Market Value: Fair Market Value (FMV) is the price at which an item would be sold at retail by a willing seller to a willing buyer. The price a willing buyer would pay a willing seller in a transaction on the open market. For stocks and bonds, this generally is the mean value…
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Rabbi Trust
Rabbi Trust means:a form of irrevocable grantor trust named for the first person to obtain a letter ruling on it. The main advantage of a Rabbi trust is the assurance to employees that their nonqualified benefits will be paid to them by their employer (e.g., in case of a hostile […]
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Rollover
About Rollover: Rollover is a tax-free reinvestment of a distribution from a qualified retirement plan into an IRA or other qualified plan within 60 days. 1. to replace one loan or debt with another. 2. to change the institution that invests one's pension plan, without recognition of […]
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Municipal Bond
Municipal Bond means:a bond issued by a state or local government body such as a county, city, town, or municipal authority. Interest earned on a municipal bond is generally not taxable by the U.S. government or in the jurisdiction that issued that bond. Any gain realized from the sale […]