Tag: Tax Terms

  • Prepaid Expenses

    The Prepaid Expenses are. amounts that are paid before the period they cover. Such expenses often include insurance and rent. Prepaid expenses are not deductible until the appropriate period. See also other Tax Terms and Definitions in U.S.A. economic performance rule. Description and […]

  • Medicare Tax

    Medicare Tax means:the hospital insurance portion of the tax assessed on compensation and self-employment earnings under the Federal Insurance Contributions Act. Medicare tax is an amount paid by individuals during the period in which they earn wages for purposes of providing them with […]

  • Gift

    Gift means:the voluntary transfer of property made without financial consideration; that is, no value is received in return. Each donor may give $10,000 annually to each donee without affecting the $600,000 lifetime exemption of property passing from an estate. Married persons may […]

  • Marketable Securities

    Marketable Securities means:securities that are easily sold. On a corporation's balance sheet, they are assets that can be readily converted into cash for example, government securities, banker's acceptances, and commercial paper. See: Quoted securities. Description and […]

  • Dependent

    Dependent means: any person with respect to whom a taxpayer can claim a dependency exemption; defined by the Internal Revenue Code as any individual supported by the taxpayer who is related to the taxpayer in specified ways or who makes his principal abode in the taxpayer's household. A […]

  • Easement

    The Easement are. payment received for granting an easement (specific limited use or enjoyment) is usually considered to be from the sale of an interest in real property. The amount received reduces the basis of the affected part of the property. If the amount received exceeds the basis of the […]

  • Asset

    Asset means:anything owned that has value; any interest in real property or personal property that can be used for payment of debts. Assets are listed on Schedule L of the corporate tax return. See Corporate Tax in the U.S. Legal Encyclopedia and Corporate Tax in the International Legal […]

  • Excess Accelerated Depreciation

    Excess Accelerated Depreciation means:the accumulated difference between the accelerated depreciation claimed for tax purposes and what the straight-line depreciation would have been. Generally, excess accelerated depreciation is recaptured (taxed) as ordinary income upon a sale, instead […]

  • Miscellaneous Itemized Deductions

    Miscellaneous Itemized Deductions means:job expenses and other miscellaneous expenses that are deductible by individual taxpayers but are not categorizable as medical expenses, taxes, interest, charitable contributions, casualty and theft losses, or moving expenses. Most miscellaneous […]

  • Investment Interest Expense

    Investment Interest Expense means (see more about entries related to interest in the U.S. here) interest paid to carry portfolio investments such as bonds, stocks, and undeveloped land. (Investment interest is Interest paid on loans used for investment purposes, such as to buy stock on […]