1031 exchange (also called a tax-deferred exchange) refers to the ability of investors and organizations to replace one investment for a similar one instead of keeping the proceeds. For certain transactions, the exchange allows the investor...
taxation
401(k)
401(k) plans (also just called 401k) are types of retirement plans that an employer sponsors which allows employees to defer taxes. 401k plans originate from the Internal Revenue Code (IRC) section 401(k) which allows contributions to these...
401(k) plan
401(k) plans (also just called 401k) are types of retirement plans that an employer sponsors which allows employees to defer taxes. 401k plans originate from the Internal Revenue Code (IRC) section 401(k) which allows contributions to these...
AB Trust
AB trust (also called a bypass trust or a credit shelter 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 one...
accelerated depreciation
Accelerated depreciation is any method of depreciation where the business depreciates a greater proportion of an asset’s value earlier in its life. A common accelerated depreciation method is MACRS. Compare with straight-line depreciation...
accord
Accord has three major definitions:
A harmonious agreement, especially between countries. An offer to substitute a different obligation for one that was previously owed, plus the acceptance of that offer. Either of the parties...ad valorem
Ad valorem translated directly from Latin, means "according to [the] value [of something].” In practical use, the term is used in taxation to designate taxes levied against property, real or personal, at a certain rate based upon the property...
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 a specific tax, where the tax...
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)
Adjusted Gross Income (AGI) is defined as the gross income earned by an individual minus several adjustments made to that income, such as trade and business deductions. Gross income is the income earned by an individual, including the wage...