Tax

Tag: Tax Terms

  • Itemized Deductions

    Itemized Deductions means:specific individualized tax deductions, allowed under provisions of the Internal Revenue Code and state and municipal tax codes for specific expenses incurred by the taxpayer during the taxable year (e.g., unreimbursed medical expenses, qualified residence […]

  • Commuting Expense

    The Commuting Expense are. expense incurred while commuting between one's home and one's place of employment; commuting expense is not deductible. An exception is allowed for an individual with a regular place of business who must commute to a temporary place of business. Also, a […]

  • Assignment

    Assignment means:the transfer of rights under an insurance policy to another person or business. For example, to secure a debt, it is not uncommon for the policyowner to transfer to the creditor the owner's right to borrow on the cash value of the policy. Life insurance policies are […]

  • Depletion

    Depletion means:the process whereby the cost or other basis of a natural resource (such as a coal interest) is recovered upon the extraction and sale of the deposit. Method used to recover the cost of assets that diminish over time, such as oil, gas, and other natural resources. There […]

  • Terminally Ill

    Terminally Ill means:having the expectation of death within 12 months. See also other Tax Terms and Definitions in U.S.A. gift in contemplation of death. See Inheritance Tax and Inheritance Tax. Description and Definition of Terminally Ill A person not expected to live more than 12 […]

  • Useful Life

    Useful Life means:the period of time over which a depreciable asset is expected to provide a competitive return. In other words, the period during which it is estimated that a depreciable asset will provide useful service to the business in which it is used. The modified accelerated cost […]

  • Guaranteed Payments

    The Guaranteed Payments are. payments to a partner by a partnership that are determined without regard to partnership income and are for the use of that partner's capital. Former Tax Regulation (check if this Reg. is current here) §1.707-4(a)(l)(i). Description and Definition of […]

  • Book Value

    Book Value means:the value of individual assets, calculated as actual cost less allowances for any depreciation. Book value may be much more or less than current fair market value. Example of Book Value: Learn more about tax examples, explanations and calculations here. X Corporation […]

  • Kiddie Tax

    Kiddie Tax means:the tax liability for children under age 14 on net unearned income (e.g., interest and dividend income) over $1,200 at their custodial parents' highest marginal tax rate. For 2010, this special tax imposes the parents' tax rate on investment income in excess of […]

  • Inventory

    Inventory means:property held for sale or for use in the manufacture of goods held for sale. Such property does not qualify for capital gains treatment. Examples of inventory are: • raw materials. • work-in-progress. • supplies used in operations. • finished goods. […]