taxation

Deduction

Definition from Nolo’s Plain-English Law DictionaryIn tax law, an amount that an individual or business can subtract from its gross income (total income) to determine its taxable income (the total income on which it owes tax). Examples of federal income...

Deferred Compensation

Definition from Nolo’s Plain-English Law DictionaryAn arrangement in which a portion of an employee's income is paid at a later date than the date when it is earned. In most cases, the primary benefit is the tax deferral on the deferred income.

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Deficiency

Definition from Nolo’s Plain-English Law Dictionary1) In tax, a difference found by the IRS between a taxpayers reported tax liability and the amount of tax the IRS says that the taxpayer should have reported.2) In lending, the remaining balance of the...

Delayed Exchange

Definition from Nolo’s Plain-English Law DictionaryAn exchange of property to put off capital gain taxes, in which the funds are placed in a binding trust for up to 180 days while the seller acquires an "exchanged" (another similar) property, pursuant to...

Dependent Care Plan

A flexible spending account which allows deducting dependent care expenses from income prior to taxation to pay dependent care expenses for the coming year - this in turn reduces the total tax liability.

Depreciable Asset

A type of physical asset that is capable of depreciation treatment. It is generally an asset used for generating income or profit and has the useful life of more than a year and gradually reduces in value over time.

Disallowance

Definition from Nolo’s Plain-English Law DictionaryA finding by the IRS after an audit that a business or individual taxpayer was not entitled to a deduction or other tax benefit claimed on a tax return.

Definition provided by Nolo’s Plain-English Law...

Disincentive

A reason that persuades parties not to engage in certain conduct. Laws often create intentional and uninentional disincentives through criminal penalties and tax provisions.

Incentive (contrast).

Disincentivize

The act of creating a disincentive or withdrawing a previously existing incentive.

See Incentivize (contrast).

Disinheritance

Definition from Nolo’s Plain-English Law DictionaryThe act by which one refuses to leave property to a would-be heir.

Definition provided by Nolo’s Plain-English Law Dictionary.

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