Tax

Tag: Tax Terms

  • Section 1245

    Section 1245 means:the part of the Internal Revenue Code that deals with gains from personal property (e.g., machines, equipment, furniture, and automobiles) on which depreciation has been claimed. Generally, gains are taxed at capital gain rates except to the extent of the depreciation […]

  • Stock Dividend

    Stock Dividend means:the payment of a corporate dividend in the form of stock rather than cash. In other words, a dividend distribution by a company to its shareholders in the form of additional shares in the company. Often a stock dividend is not taxable, but in certain situations it […]

  • Listed Property

    Listed Property means:automobiles, computers, and cellular phones that are subject to the 50% business use test. "Listed property" is the term used for depreciable assets that Congress has put on a special list for special scrutiny by the IRS. If listed property is used […]

  • Foreign Tax Credit

    Foreign Tax Credit means:credit allowed against U.S. inc: me taxes for foreign taxes paid. The credit can be used only to lower U.S. taxes on income earned overseas. A foreign tax credit limitation is computed by multiplying the U.S. tax Kabi r. before the credit by the ratio of foreign […]

  • Fixing-up Expenses

    The Fixing-up Expenses are. expenses incurred for the purpose of physically preparing a personal residence for sale. Qualified fixing-up expenses may be deducted from the sales price to determine the amount (the adjusted sales price) that must be spent for a new residence in order to defer […]

  • Profit

    Profit means:the positive difference that results from selling products and services for more than the cost of producing the goods. Broadly, the excess of revenue over expenditure. See also other Tax Terms and Definitions in U.S.A. net income; contrast with the entry loss. Description […]

  • Parsonage Allowance

    Parsonage Allowance means:the rental value of a home or a rental allowance paid to a minister of the gospel, which, for regular income tax purposes, is excluded from gross income to the extent that it is expended for the costs of providing a home. The parsonage allowance is, however, […]

  • Capital

    Capital means:the possessions or assets of a corporation or other business that are used in operating the business. Description and Definition of Capital Money needed to start or grow a business. The excess of assets over liabilities. Cash and other assets used in operating a business. […]

  • Retained Earnings

    Retained Earnings means:net profits kept to accumulate in a business after dividends are paid. Retained earnings are distinguished from contributed capital. Compare with earnings and profits. See also other Tax Terms and Definitions in U.S.A. accumulated earnings tax; accumulated […]

  • General Partner

    General Partner means, in a partnership, a partner whose liability is not limited. All partners in an ordinary partnership are general partners. A limited partnership must have at least one general partner and at least one limited partner. As a general rule, partners include on their personal […]