taxation

Charitable Trusts Purposes

A charitable trust qualifies for certain favorable treatment under U.S. law. For example, it is not subject to the rule against perpetuities and cannot fail for a lack of definite beneficiaries. To qualify as a charitable trust, the trust must have a...

Charity

A charity is a nonprofit organization whose efforts are focused on aiding those in need. This can take several forms, which can be local or international in scope. Some raise money or provide services like food, clothing, or shelter to...

Cigar

For the purposes of taxation and FDA regulation, “cigar” means “any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco” unless, “because of its appearance, the type of tobacco used in the filler, or its packaging and...

Cigarette

For the purposes of taxation and FDA regulation, “cigar” means “any roll of tobacco wrapped in leaf tobacco or in any substance containing tobacco” unless, “because of its appearance, the type of tobacco used in the filler, or its packaging and...

Cohan Rule

A common law rule whereby taxpayers, when unable to produce records of actual expenditures, may rely on reasonable estimates provided there is some factual basis for it. "Absolute certainty in such matters is usually impossible and is not necessary;...

Constructive Receipt of Income

A tax term which determines when a cash-basis taxpayer has received income. The taxpayer is liable for income that is not yet physically received but has been credited to the taxpayer's account or will be available to him at some future time.

Contribution

Business Law Definition

In business and partnership law, contribution may refer to a capital contribution, which is an amount of money or assets given to a business or partnership by one of the owners or partners. The capital contribution increases the...

Cost Basis

Also called tax basis, cost basis is the original cost of acquiring a property (usually its purchase price plus any commissions or fees), for tax purposes. It is primarily used for computing capital gain or loss from the transfer of property...

Death Taxes

Definition from Nolo’s Plain-English Law DictionaryTaxes levied at death, based on the value of property left behind. There are two main types of death taxes in the United States: estate taxes and inheritance taxes. The federal government and some state...

Deductible Business Expense

An expense which must be an 1) ordinary and 2) necessary 3) expense 4) that was paid or incurred during the taxable year 5) in carrying on 6) a trade or business activity, in order to be deductible. See 26 U.S.C. § 162(a).

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