taxation

AB Trust

Definition

An irrevocable trust created by a married couple to avoid probate and minimize federal estate tax. An AB trust is created by each spouse placing property into a trust and naming someone other than his or her spouse as the final beneficiary of...

Accelerated Depreciation

Definition

Any method of depreciation used by businesses for accounting or tax purposes that allows greater deductions in the earlier years of the life of a company asset, as opposed to the straight-line depreciation method.

Accelerated...

Ad Valorem

A Latin term meaning "according to [the] value [of something]". The term is used in taxation to designate taxes levied against property, real or personal, at a certain rate based upon the property's value.

An ad valorem tax is levied according...

Ad Valorem Tax

Definition from Nolo’s Plain-English Law DictionaryA tax that is calculated according to value of property, based on an assigned valuation of a piece of real estate or personal property. Local property tax and sales tax are common examples. An ad valorem...

Adjusted Basis

Definition from Nolo’s Plain-English Law DictionaryAn owner's original tax basis in an asset, adjusted for various events during the period of ownership. The costs of capital improvements are added to the original basis (which is normally the price the...

Adjusted Gross Income (AGI)

Definition

Adjusted gross income (AGI) is gross income from taxable sources minus allowable deductions.

Overview

In the equation above, taxable sources can include wages, interest, capital gains, income from retirement accounts, and alimony...

Adjustment

Definition from Nolo’s Plain-English Law DictionaryThe settlement of how much is to be paid on a claim or debt. For example, an IRS-approved change to a tax liability as originally reported on a tax return. Or, an insurance company's settlement on a claim...

AGI

An abbreviation for Adjusted Gross Income.

Alcohol

Alcohol, Tobacco, and Controlled Substances: An Overview

Health and other public concerns have generated detailed Federal and state regulation of the sale and possession of alcoholic beverages, tobacco products, and a wide range of other "controlled...

Alternative Minimum Tax (AMT)

Definition from Nolo’s Plain-English Law DictionaryAn IRS system created to ensure that high-income individuals, corporations, trusts, and estates pay a minimum amount of tax, regardless of deductions, credits, or exemptions. To arrive at AMT, certain...

Pages