taxation

pass-through taxation

Pass-through taxation refers to businesses that do not pay taxes on the entity level. Instead, the income passes to the owners of the business who pays personal income taxes for their share of the business. Pass-through taxation typically...

passive

The word “passive” denotes a lack of action. Some common uses of the term “passive” in a legal sense include:

A “passive breach of contract” is where a person neglects to do what they are obligated under a contract. “Passive...

payroll taxes

Payroll tax is tax paid by an employer for each employee and deposited into an IRS account. The Internal Revenue Code imposes two forms of employment tax obligations on an employer that both fall under payroll tax. First, the employer is...

Preparer Taxpayer Identification Number (PTIN)

A Preparer Taxpayer Identification Number (PTIN) is a unique eight-digit number preceded by the letter P, issued by the Internal Revenue Services (IRS) for enrolled agents and any person who prepares or assists in preparing federal tax...

property tax

A property tax refers to a tax on real property. Generally, property taxes are ad valorem, based on a fixed proportion of the value of the property on which the tax is assessed.

Ad valorem property taxes are based on...

proprietorship

A proprietorship is a form of business organization in which one person owns all the assets and assumes all the debts of the business. It is also referred to as sole proprietorship, or individual proprietorship. The owner of the...

qualified intermediary

A qualified intermediary refers to a person who “[e]nters into a written agreement with the taxpayer . . . and, as required by the exchange agreement, acquires the relinquished property from the taxpayer, transfers the relinquished property,...

qualified personal residence trust (QPRT)

Qualified personal residence trust (QPRT) refers to a type of trust used to minimize estate and gift taxes by moving personal residences into a trust. In a QPRT, the grantor irrevocably transfers a residence to the trust for a set amount of...

qualified plan

A qualified plan refers to employer-sponsored retirement plans that satisfy requirements in the Internal Revenue Code for receiving tax-deferred treatment. Most retirement plans offered by employers qualify including defined contribution...

qualified retirement plan

A qualified retirement plan refers to employer-sponsored retirement plans that satisfy requirements in the Internal Revenue Code for receiving tax-deferred treatment. Most retirement plans offered by employers qualify including defined...

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