Tax

Tag: Tax Terms

  • Section 306 Stock

    Section 306 Stock means:preferred stock received as a nontaxable stock dividend or received tax free in a corporate reorganization. If sold or redeemed, the tainted stock results in ordinary income. See bailouts. See Dividend in the American Legal Encyclopedia<…

  • Pecuniary Bequest

    Pecuniary Bequest means:money given to an heir by a decedent….

  • Joint Tenancy

    Joint Tenancy means:joint control over property or interest only during the lifetime of the tenants, recognized in most states. Upon the death of a joint tenant, the property or interest passes automatically to the surviving joint tenant. Former IRC (check <a href="http://lawi.us/internal-revenu…

  • Blocked Income

    Blocked Income means:foreign income that is not available to the earner or owner because of monetary, exchange, or other restrictions imposed by a foreign country. Blocked income is not included in income until it is free of such restrictions. Former IRC (check <a href="http://lawi.us/internal-r…

  • Business Energy Credit

    Business Energy Credit means:credit based on electricity sold to unrelated persons and produced from qualified energy resources at a qualified facility during the 10-year period after the facility is placed in service. The credit equals 1.5 cents (adjusted for inflation) per kilowatt hour of suc…

  • Stripped Preferred Stock

    Stripped Preferred Stock means:preferred stock acquired without dividends included. Purchases of stripped preferred stock after April 30, 1993, are treated essentially the same as those of stripped bonds. See Dividend in the American Legal Encyclopedia and …

  • Sinking Fund

    Sinking Fund means:money accumulated on a regular basis in a separate custodial account and used to redeem debt securities or preferred stock issues. Putting money in a sinking fund does not provide a tax deduction; interest earned on the sinking fund is taxable….

  • Phantom Taxable Income

    Phantom Taxable Income means:income that arises because estates and trusts are not allowed to deduct part of certain items (such as passive activity losses and personal or consumer interest) and because income tax laws and state laws differ concerning principal and income interests. See also <a …

  • Leasehold Improvements

    Leasehold Improvements means:fixtures attached to real estate that are generally acquired and installed by the lessee. Upon expiration of the lease, the tenant can generally remove them, provided that such action does not damage the property or conflict with the lease. For example, the cabinets,…

  • Low-income Housing Credit

    Low-income Housing Credit means:credit available to encourage business owners to provide affordable housing for low-income individuals. The credit rate is set monthly by the U.S. Internal Revenue Service and is available over a 10-year period. For most newly constructed and substantially rehabil…