A complex trust is one that does not fulfill the IRS conditions of a simple trust. The expression "complex" refers to the trustee's discretion rather than the trust's provisions being more complex. A complex trust must engage in at least one...
tax
constructive receipt of income
Constructive receipt of income is a tax term which determines when a cash-basis taxpayer has received income. Constructive receipt of income occurs when a party obtains income that is not yet physically received but has been credited to the...
credit shelter trust
Credit shelter trust (CST) (also called an AB trust or a bypass trust) is a tool used by well-off married individuals to legally maximize their estate tax exemptions.
The strategy involves creating two separate trusts after...
deductible business expense
Deductible business expense is a very broad category of deductions allowed for businesses because the Internal Revenue Service (IRS) tries to tax business profits, not revenue. Deductible business expenses has been given a broad definition...
deficit
Deficit broadly refers to a person or entity having more expenses than revenue. Typically deficit is used to refer to finances of a company or government where the entity is spending more money than it makes, having to borrow money to cover...
dependent
Dependent has multiple legal meanings. Generally, “dependent” refers to an individual who relies on support from another individual and usually cannot exist or sustain themselves independently without the aid or support of someone else....
depreciable asset
Depreciable asset is generally an asset used for generating income or profit and has a useful life of more than a year and gradually reduces in value over time. It is a type of physical asset that is capable of depreciation treatment under...
depreciation
Depreciation refers to the reduced value of something over time due to wear and tear. Many items, from appliances to major construction machinery, lose value over time and eventually must be replaced.
Large items can affect...
depreciation reserve
Depreciation reserves are funds established by a business for expensive items that depreciate overtime and must be replaced. The business puts money into the reserve every year according to the amount the item depreciates and its salvage...
domestic corporation
A domestic corporation is a corporation that does business in the jurisdiction in which it is incorporated. This can be compared to a Foreign Corporation which conducts business in a jurisdiction other than its place of incorporation. The...