A type of physical asset that is capable of depreciation treatment. It is generally an asset used for generating income or profit and has the useful life of more than a year and gradually reduces in value over time.
The total depreciation of an asset. It is calculated by subtracting the asset's current value from its original value, or by multiplying the annual depreciation rate by the number of years the asset was held.
A flexible spending account which allows deducting dependent care expenses from income prior to taxation to pay dependent care expenses for the coming year - this in turn reduces the total tax liability.
An expense which must be an 1) ordinary and 2) necessary 3) expense 4) that was paid or incurred during the taxable year 5) in carrying on 6) a trade or business activity, in order to be deductible. See 26 U.S.C. § 162(a).
In the accounting context, it is the entry on the right-hand side of the balance sheet. Credit can decrease the value of an asset or it can increase the amount of capital, liability or revenue. It is a form of debt.
A tax term which determines when a cash-basis taxpayer has received income. The taxpayer is liable for income that is not yet physically received but has been credited to the taxpayer's account or will be available to him at some future time.