tax

1031 exchange

Definition

An exchange, i.e. sale and reinvestment of the proceeds therefrom, of business or investment property for like-kind business or investment property, which allows a seller to defer payment of capital gains taxes.

Illustrative caselaw

See...

401(k)

Definition

A type of savings account made possible by federal law. By creating a financial plan under 26 U.S.C. 401(k), employers can help their workers save for retirement while reducing taxable income. Workers can choose to deposit part of their...

401(k) plan

Definition

A deferred compensation retirement plan in which an employer withholds a portion of an employee's pretax wages and invests them in a qualified plan; an employer may contribute to an employee's 401(k) plan, e.g. by matching an employee's...

A/R

Definition

Abbreviation for accounts receivable.

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...

Accord

Definition

1) A harmonious agreement, especially between countries.

2) An offer to substitute a different obligation for one that was previously owed, plus the acceptance of that offer. Either of the parties involved can propose an accord. If...

Account Receivable

Definition

See accounts receivable.

Accounts Payable

Definition

Short-term debt that a company owes to its suppliers for products received before payment is made. Accounts payable entries are listed under "Current Liabilities" in the business' balance sheet and the items are removed once the account has...

Accounts Receivable

Definition

Money owed to a business by another business or individual in exchange for property or services that were provided on credit. The settlement of an account receivable begins by sending an invoice to the customer. A company enters accounts...

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