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

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.

Overview

In 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...

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