Trade means:
a business, profession, or occupation; but also may be a commerce transaction. A trade often implies (or may imply) a skilled handicraft, which is pursued on a continuing basis, such as carpentry. Trade or business expenses are deductible, in contrast to nondeductible […]
Airport and Airway Trust Fund Issue You may find information about Airport and Airway Trust Fund in this Tax Platform of the American Encyclopedia of Law.
About Trust: A trust is a legal arrangement whereby the owner of property (i.e. settlor) transfers ownership to a person(s) (i.e. trustee) who is to hold and control the property according to the owner's instructions, for the benefit of a designated person or persons (i.e. the […]
Transportation Expenses Issue You may find information about Transportation Expenses in this Tax Platform of the American Encyclopedia of Law.
About Transaction Taxes: Taxes on economic transactions, such as the sale of goods and services. Tax that uses a specific type of transaction as its object, e.g. sales tax, immovable property transfer tax, etc. These can be based on a set of percentages of the sales value (ad valorem-sales […]
Description and Definition of Travel and Lodging Expenses Expenses you incur when you are traveling away from home for your business or as an employee. To be deductible these expenses must be ordinary and necessary. Resources See Also Further Reading Travel and Lodging Expenses in the […]
Description and Definition of Trial Balance A listing of the accounts in a general ledger and their balances as of a specified date. A trial balance is usually prepared at the end of an accounting period and is used to see if additional adjustments are required to any of the balances. […]
Treasury Decisions “. . . [U]pon approval by the Commissioner [of the IRS] and signature by the Assistant Secretary of … Read more
Treasury Regulations Treasury Regulations Treasury Regulations, commonly referred to as Federal tax regulations, pick up where the Internal Revenue Code … Read more
About Treasury Decision: A Treasury Decision (T.D.) is a final U.S. Treasury regulation….
About Travel and Entertainment Expenses: Travel and Entertainment (T&E) Expenses are ordinary and necessary business expenses paid while traveling away from home for a business, profession, or job. An ordinary expense is one that is common and accepted in a given business, trade, or profession. A ne…
Trade Date means:
a date that is generally 5 business days before the settlement date of a securities transaction. For taxpayers who buy and sell stock on a securities market, the holding period begins the day after the trade date, and these persons must recognize gains and losses on the trade da…
Trial Court means:
a court of original jurisdiction of a tax dispute. Tax cases start in the U.S. Tax Court, U.S. Court of Federal Claims, and U.S. District Court….
Trust Instrument means:
a legal document that creates a trust and stipulates its terms, trustee, beneficiaries, income, and corpus disposition….
Treasury Bond means:
a long-term (more than 10-year) debt instrument issued by the U.S. government. Issues of the U.S. government have the highest rating among the so-called fixed-income or debt securities and therefore offer the lowest taxable yield of any bonds. Interest on U.S. Treasury securi…
Transmitter means:
a person who sends the electronic return data, who provides transmission services to electronic filers for sending, directly to the IRS. Transmit is to send a tax return to the IRS electronically. Tax returns prepared on paper can be sent through the mail. See
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Transient Worker means:
a person who moves from job to job, maintains no fixed home, and is not associated with any particular business locality. Each place he or she works becomes the main place of business and the tax home. A transient worker cannot deduct expenses for meals and lodging….
Trustee means:
a person who holds the legal title to trust property for the benefit of the beneficiary and is responsible for administering this property for the benefit of the beneficiary. See: Trust….
Trustor means:
a person who creates a trust, often called the settlor or grantor….
Trader means:
a person who actively buys and sells securities in such a volume as to constitute a trade or business for tax purposes. A trader does not have an investment expense limitation and is not subject to the 2% floor for miscellaneous itemized deductions or the 3% phase-out of itemized de…
Triangular A-type Merger means:
a special A-type merger in which the acquiring corporation (a subsidiary) uses stock of its parent to pass to the target corporation. Three requirements must be met in order to qualify for this nontaxable corporate reorganization: 1. The merger would have qualified…
Transfer-for-value Rule means:
a rule that, if an insurance policy is transferred for a valuable consideration, the death proceeds are excludable from income to the extent of the consideration paid by the transferee, plus the net premiums paid by the transferee after the transfer. Former IRC (che…
Trade Or Business means:
a regular and continuous activity undertaken for a profit, other than that of an investor trading in securities. Trade or business has the same meaning as in I.R.C. Section 62. Generally, a taxpayer is conducting a trade or business if: 1) the primary purpose for engaging…
Transferee means:
a taxpayer to whom property is transferred (e.g., a donee or devisee). For example, the transferor, not the transferee, is subject to any gift taxes on a gift transfer….
Transfer Incident To Divorce means:
a transfer that is related to the ending of a marriage or that occurs within 1 year after the date on which the marriage ends. No gain or loss is recognized on a transfer of property from an individual to a spouse, or formed/- spouse, if incident to divorce. Th…
Transfer Pricing means:
A transfer price is the price charged by a business entity for goods, services or intangible property to a subsidiary or other related business entity. Abusive transfer pricing occurs when income and expenses are improperly allocated for the purpose of reducing taxable inc…
Treasury Bill means:
a U.S. government promissory note (T-Bill) issued by the U.S. Treasury and having a maturity period of up to 1 year. Treasury bills are sold at a discount to face value, which is paid at maturity. The difference is the income to the owner, which is taxable by the Federal Gove…
Trustee In Bankruptcy means:
an officer, elected and approved by the referee or judge of a bankruptcy proceeding, who takes legal title to the property or money of the bankrupt party and holds it in trust for equitable distribution among the bankrupt's creditors. The trustee is also responsible f…
Treasury Note means:
an intermediate-term (1- to 10-year) obligation of the U.S. government that bears interest paid by coupon. As is true of all direct U.S. government obligations, interest on Treasury notes is taxable as ordinary income….
Transferee Liability means:
liability that is covered by state laws dealing with creditors' rights and by federal laws ensuring priority of payments for federal claims in insolvency situations. Former IRC (check if this IRC provision is c…
Trademark means:
insignia or logo that distinguishes one maker's goods from all others. Legally registered name, word, symbol or design which identifies the goods or services of a particular manufacturer, business or company. The cost of securing a trademark may be amortized over 15 years. The tr…
Transaction means:
any sale, assignment, lease, license, loan, advance, contribution, or other transfer of any interest in or right to use any property (whether tangible or intangible) or money, however the transaction is effected, and whether or not the terms of the transaction are formally docu…
Transferred-basis Property means:
any property having a basis determined under any income tax or related law, by reference to the basis in the hands of the donor, grantor, or other transferor. Former IRC (check if this IRC provision is cu…
Treasury Stock means:
stock reacquired by an issuing corporation and available for retirement or resale. Whether the purchase price is more or less than the amount originally paid for such shares, no gain or loss ensues to the corporation from the acquisition. Later, if the shares are sold for mo…
Tracing Rules means:
rules used to determine the origin of property held at death for estate tax purposes (before 1977) and to ascertain whether borrowed money is usea iu purchase tax-exempt property. An interest deduction is denied for debt incurred to purchase or carry a tax-exempt security. Th…
Transferor means:
the decedent (for the estate tax) or donor (for the gift tax). Former IRC (check if this IRC provision is current here) §2652….
Transaction Costs means:
the costs associated with buying and selling an investment. For example, the following are transaction costs for real estate: appraisal fees, brokerage commissions, legal fees, mortgage discount points, mortgage origination fees, recording fees, survey fees, and title sea…
About Transportation Tax: Tax levied on transports (like vehicles, ships and aircraft) using public highways, rivers, and airports maintained by the government. For Transportation Fringe Benefit, see qualified transportation fringe….
The Transitional Rules are. interim rules that apply while a tax provision is being phased in or out. For example, the consumer (personal) interest deduction was phased out gradually from 1987 through 1990….
Transfer Tax means:
the tax paid on the passing of title to property or to a valuable interest.
Tax levied on the transfer of goods and rights, e.g. purchase and/or sale of securities and immovable property….