The sale of a good or service to a charitable organization for less than the fair market value of the good or service received.Bargain sales are often…

A term used in finance that refers to a splitting of something into two separate pieces. Generally, this term is used to refer to the splitting of a…

Two out of the three co-chairs of the Bill and Melinda Gates Foundation. William (Bill) H. Gates III, founder of Microsoft and his wife Melinda French…

A term coined by the forest-products industry to describe an abusive subsidy scheme within the industry. Black liquor is a byproduct of creating wood…

A taxpayer who qualifies for the additional standard deduction amount accorded to blind persons. Blind taxpayers are eligible to have their standard deductions…

Any resident of a foreign country that meets the IRS criteria for the bona fide residence test. This test classifies any person that lives in any foreign…

An additional amount of deductible depreciation that is awarded above and beyond what would normally be available. Bonus depreciation is always taken…

A situation where inflation pushes income into higher tax brackets. The result is an increase in income taxes but no increase in real purchasing power…

A rate of tax above which it is unprofitable to engage in a transaction. After the tax is paid, there would not be enough profit or financial benefit…

Any expenses incurred in the ordinary course of business. Business expenses are deductible and are always netted against business income. Although it…

Any income that is realized as a result of business activity. Business income is a type of earned income, and is classified as ordinary income for tax…

A form of insurance coverage that replaces business income lost as a result of an event that interrupts the operations of the business, such as fire or…

The one-year period that begins on January 1 and ends on December 31, based on the commonly used Gregorian calendar. For individual and corporate taxation…

Formerly known as "Revenue Canada", this is Canada's federal agency responsible for income tax and trade regulations. This is the Canadian equivalent…

A qualified income trust as designated by the Canada Revenue Agency that operates as a profit-seeking corporation. This type of income trust, which pays…

When a creditor forgives a debt without requiring consideration in return. The amount of debt that is forgiven by cancellation of debt is considered income…

A rate of depreciation used for income tax purposes only. This term primarily relates to Canadian taxation. The CCA rate that can be claimed depends…

A unique account where untaxed gains are deposited within a private company. These untaxed gains are usually distributed to shareholders or owners without…

Distributions that are paid to a mutual fund's shareholders out of the capital gains of the company's investment portfolio. Mutual fund capital gains…

An assessment of the extent to which a stock fund or other similar investment fund's assets have appreciated or depreciated, which may have tax implications…

A type of tax levied on capital gains incurred by individuals and corporations. Capital gains are the profits that an investor realizes when he or she…

The loss incurred when a capital asset (investment or real estate) decreases in value. This loss is not realized until the asset is sold for a price that…

The net amount of capital losses that aren't deductible for the current tax year but can be carried over into future tax years. Net capital losses (total…

An account created in the income statement section of a business' financial statements that holds a suitable amount of funds meant to pay off upcoming…

An allowance that is paid out in cash, instead of being reimbursed at a later date. Employers usually give cash allowances to employees in order to cover…

A type of transaction in the futures market in which the cash or spot price of a commodity is below the futures contract price. Cash and carry transactions…

An award given to an employee or contestant in the form of cash. Cash awards can either be the only award option or taken in lieu of a tangible item…

A taxpayer who reports income and deductions in the year that they are actually paid or received. Cash basis taxpayers cannot report receivables as income…

A gift made by an individual or an organization to a nonprofit organization, charity or private foundation. Charitable donations are commonly in the form…

Identical to a standard split-dollar insurance plan, except that a charity, instead of an employer, owns the life insurance policy. Charitable split-dollar…

A non-refundable tax credit for unreimbursed childcare expenses paid by working taxpayers. The Child and Dependent Care Credit is designed to encourage…

A credit given to taxpayers for each dependent child that is under the age of 17 at the end of the tax year. The Child Tax credit is a nonrefundable credit…

One of the key criteria set forth by the IRS that a person must satisfy in order to be claimed as someone else's dependent. The citizenship test dictates…

1. Previously given monies or benefits that are taken back due to specially arising circumstances. 2. A retraction of stock prices or of the market in…

A test for deductibility of business-related dining and entertainment expenses. The clear business setting test mandates that there can be no other motive…

A certificate that verifies that an entity has paid all its tax liabilities at the time that the entity  ceases to exist or is transferred to a new owner…

Clifford Trusts allow grantors to transfer assets that produce income into the trust and then reclaim them when the trust expires. These trusts cannot…

A fund that is operated by a trust company or a bank and handles a pooled group of trust accounts. Collective investment funds combine the assets of various…

A tax-free form of compensation paid to members of the armed forces who are on active duty in a designated combat zone or hazardous duty area. Combat…

An area designated as a war zone during a specified period. Members of the military do not need to claim taxable income they earn while working in a combat…

Income earned by taxpayers who live in community property states. Community income is considered to belong equally to both spouses, just as with all other…

Expenses that are incurred as a result of the taxpayer's regular means of getting back and forth to his or her place of employment. Commuting expenses…

A right granted by a government to a corporation. It specifies rules under which the company can operate locally. Some concession agreements might include…

The seizure of a property by a public authority for a public purpose. Condemnation often occurs when a taxpayer owns property or real estate in a place…

A theory stating that an investment firm that passes all capital gains, interest and dividends on to its customers/shareholders shouldn't be levied at…

A comprehensive tax return that encompasses a group of smaller entities. Consolidated tax returns are often filed by business conglomerates on behalf…

One of two ways of calculating the accrued discount of bonds that trade in the secondary market. The constant yield method is an alternative to the ratable…

Any interest that is paid during the construction phase of a building or other tangible property. The interest may be incurred directly as the result…

A tax term mandating that a taxpayer is liable for income, which has not been physically received, but has been credited to the taxpayer's account or…

A section of the Internal Revenue Code that expands the types of transactions that are considered to be sales and are subject to capital gains tax. According…