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...
taxation
AB Trust
Definition
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
Ad valorem is a Latin phrase that translates to “according to the value.” The essential characteristic of ad valorem tax is that it is proportional to the value of the underlying asset, unlike specific tax, where the tax amount remains constant,...
Adjusted Basis
Adjusted basis is the cost basis of an asset adjusted for various events during its ownership. It is usually used to calculate an owner’s capital gain or loss for income tax purposes when the property is sold, or to calculate an inheritor’s...
Adjusted Gross Income (AGI)
Definition
Adjusted gross income (AGI) is gross income from taxable sources minus allowable deductions.
OverviewIn the equation above, taxable sources can include wages, interest, capital gains, income from retirement accounts, and alimony...
Adjustment
Adjustment is a settlement, allowance, or deduction made on a debt or claim that has been objected to by a debtor or creditor in order to establish an equitable arrangement between the parties.
For tax returns, an IRS-...
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)
Under US tax law, certain tax benefits such as deductions, credits, and exemptions can significantly reduce a taxpayer's regular tax amount. The IRS created the alternative minimum tax (AMT) to make sure that high-income individuals and corporations...