taxation

Gift Tax

Gift tax is a Federal tax levied on any gift, or combination of gifts, from one person to another that exceeds the annual exclusion amount. The annual exclusion amount varies by year but is $15,000 as of 2021. This exclusion means you can...

Gross Income

The total income of an individual or business from all sources, before subtracting adjustments, exemptions, or deductions allowed by tax law.

Head of Household

1) For purposes of federal income taxes, a filing category for someone who is unmarried or legally separated from a spouse and who provides a home for at least one dependent for more than half of the year. The tax rate for someone filing as head of...

Home Office

The area of a home also utilized as a business' primary office. Business-related expenses incurred from the home office may be tax deductible if the business owners spends over half of his or her time working from there.

Also may refer to the...

Improvement

As applies to real estate, any permanent structure or work (such as planting trees) on real property, which increases its value or extends its useful life. As defined by the IRS, an addition to or alteration of a capital asset, which either increases...

Incentive Stock Option (ISO)

An option to purchase stock (usually given to senior employees) which provides favorable tax treatment for the option holder, as long as certain holding period requirements are met. If the holding period requirements are met, the options are not...

Income Tax

Overview

In 1913, the Sixteenth Amendment to the U.S. Constitution was ratified. It states: "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without...

Independent Contractor

A legal category of worker that is distinct and different from an employee. The key to the definition is that, unlike employees, independent contractors retain control over how they do their work. Employers are not required to withhold and pay...

Internal Revenue Service (IRS)

The Internal Revenue Service (IRS) is the tax administrator and collector of the United States of America. It’s a bureau of the Department of the Treasury.

In July of 1862, Congress established the Office...

Jobs and Growth Tax Relief Reconciliation Act of 2003

Definition from Nolo’s Plain-English Law Dictionary

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

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