wex definitions

Definition

Under § 1202 of the Internal Revenue Code, stock of a domestic C corporation whose aggregate gross assets do not exceed $50,000,000 before or immediately after issuance. A taxpayer who acquires qualified small business stock at its original issue and holds it for more than five years may exclude 50 percent of any gain from a sale or exchange of that stock from his or her gross income. 

Definition

Under the business records exception to hearsay, a witness who lays the foundation for the admission of a company's business records into evidence. 

Definition

Non-absolute property ownership: ownership that is limited in time, restricted to one or more uses, or shared.

Illustrative caselaw

See, e.g. Holmes v. United States, 85 F.3d 956, 959 (2d Cir. 1996).

See also

• Conditional ownership

• Joint tenancy

• Life estate

• Real property

Definition

Under the Employee Retirement Income Security Act ("ERISA"), a judgment, decree, or order regarding child support and coverage under a group health plan that (1) assigns the right to receive benefits under a group health plan and (2) is made pursuant to either a state's domestic relations law or the Social Security Act,

Definition

An indorsement — the placement of a signature on the back of a negotiable instrument — coupled with an additional phrase, e.g. "without recourse" or "for deposit only," limiting the liability of the indorser (signer) in the event the instrument is dishonored. A qualified indorsement makes it more difficult for a thief or embezzler to cash an instrument. Also spelled qualified endorsement. 

Definition

A term of art used as follows by the Americans with Disabilities Act:

1) Employment:

Definition: "[A]n individual who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual holds or desires." 42 U.S.C. § 12111(8).

Definition

In a 1031 exchange, a person who acquires business or investment property from a taxpayer, sells that property, uses the proceeds therefrom to acquire like-kind business or investment property for the taxpayer, and then transfers the like-kind property to the taxpayer. A taxpayer who uses a qualified intermediary to conduct a 1031 exchange can defer payment of capital gains tax on the sale of his or her property.

Definition

An abbreviation for qualified terminable interest property trust. See qualified terminable interest property trust.

Illustrative caselaw

See, e.g. Wells Fargo Bank New Mexico, N.A. v. United States, 319 F.3d 1222 (10th Cir. 2003).

See also

• Qualified domestic trust

• Estates and trusts

Definition

A trust for a surviving spouse, who is not a U.S. citizen, that qualifies for the marital deduction. 26 U.S.C. § 2056(d)(2). Also called QDOT.

Definition

Under the Employee Retirement Income Security Act ("ERISA"), a judgment, decree, or order regarding child support, alimony, or marital property rights that assigns the right to receive all or part of the benefits payable under a pension plan and that is made pursuant to a state's domestic relations law. 29 U.S.C. § 1056(d)(3).