Property that is involuntarily seized by a governmental authority for any reason. Requisitioned property can be taken for a number of reasons relating…

A foreigner who is a permanent resident of the country in which he or she resides but does not have citizenship. To fall under this classification in…

A type of property that derives more than 80% of its revenue from dwelling units. Residential rental property uses the 27.5 year modified accelerated…

The payment of punitive damages that are owed as a result of wrongdoing or neglect. Restitution payments are an attempt to restore a person to a previous…

Any type of agreement that requires the buyer to either take or abstain from a specific action. In real estate transactions, restrictive covenants are…

A mandatory tax placed on income that is earned on investments in a country that is not the resident's home country. This only applies to countries that…

The gain or loss of a security in a particular period. The return consists of the income and the capital gains relative on an investment. It is usually…

A person who works for the Internal Revenue Service (IRS) examination department. Revenue agents are usually responsible for (random) audits.

Changes to an assessment after examination by an IRS agent. The changes are recorded on form 4549.This isn't always bad news. If you were over-assessed…

1. A person working for the Internal Revenue Service (IRS) collections department. 2. Short for Chief Revenue Officer, a person responsible for all revenue-generating…

A decree issued by the IRS that essentially has the force of law. A revenue ruling outlines the IRS's interpretation of the tax laws and is binding on…

A type of property exchange wherein the replacement property is acquired first, and then the current property is traded away. Reverse exchanges were created…

A protection-based transfer of assets from one destination to another, usually through the use of offshore accounting. A ring fence is meant to protect…

An Internal Revenue Service (IRS) rule that allows for penalty-free withdrawals from an IRA account. The rule requires that, in order for the IRA owner…

A tax imposed by the government at the point of sale on retail goods and services. It is collected by the retailer and passed on to the state. It is…

A non-refundable tax credit available to lower income individuals and households that contribute to qualified retirement savings plans. This includes…

A U.S. income tax form used by taxpayers to report itemized deductions, which can help reduce an individual's federal tax liability. Expenses that can…

A U.S. income tax form used by taxpayers to report their realized capital gains or losses.  Investors are required to report their capital gains (and…

A section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business…

A section of the Internal Revenue Code that mandates that any transfer of property from one spouse to another is income tax-free. No deductible loss or…

A tax term relating to depreciable business property that has been held for over a year. Section 1231 property includes buildings, machinery, land, timber…

This is a specific tax credit that allows taxpayers to receive capital gains treatment on the sale of subdivided lots of land. The purpose of the Section…

A part of the IRS code stating that depreciable property that has been sold at a price in excess of depreciated or salvage value may qualify for favorable…

A section of the IRS code stating that a gain from selling real estate that has been subjected to accelerated depreciation should be treated as ordinary…

A tax credit available for taxpayers who are repaid in a later year more than $3,000 in wages from a prior year. Section 1341 allows taxpayers to claim…

An immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating…

A financial transaction involving a capital loss or gain on an investment held in a foreign currency. A Section 988 transaction relates to IRS Section…

A monetary deposit given to a lender, seller or landlord as proof of intent. Security deposits can be either refundable or nonrefundable, depending on…

An independent contractor or sole proprietor who reports income earned from self-employment. Self-employed persons control who they work for, how the…

A tax imposed on self-employed people, who must pay this tax in order to receive social-security benefits upon retirement. The self-employment tax may…

A separate Form 1040, or a variant thereof, filed by a married taxpayer who is not filing jointly. A separate return is usually filed either by a married…

A two-hour exam offered by the Financial Industry Regulatory Authority (FINRA) that tests a person's knowledge of how direct participation programs (DPPs)…

A non-marketable, interest-bearing U.S. government savings bond that is guaranteed to at least double in value over the initial term of the bond, typically…

A tax imposed on the removal of nonrenewable resources such as crude oil, condensate and natural gas, coalbed methane and carbon dioxide. Severance tax…

A tax year, whether fiscal or calendar, that is less than one year in length. Short tax years occur either when a business is started or the method of…

A capital gain realized by the sale or exchange of a capital asset that has been held for exactly one year or less. Short-term gains are taxed at the…

A lien that does not appear in any public record. This is a method used by the IRS to collect unpaid taxes when less dramatic measures, such as sending…

A retirement plan that an employer or self-employed individuals can establish. The employer is allowed a tax deduction for contributions made to the SEP…

A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. These type of taxes are levied…

The filing status used by a taxpayer who is unmarried and does not qualify for any other filing status. Your filing status does affect your taxation bracket.

A federal taxpayer identification number for Americans. An SSN number is required to get a job and claim taxes or other tax benefits. There are a lot…

The sole proprietor is an unincorporated business with one owner who pays personal income tax on profits from the business. With little government regulation…

A special type of municipal bond used to fund a development project. Interest owed to lenders is paid by taxes levied on the community benefiting from…

The levy assessed against the portion of a property that has been condemned by a public authority. The special assessment tax will reduce the amount of…

Children who have been determined to require special attention and specific necessities that other children do not. The state decides upon this status…

A personal financial accounting method that, when used properly, can help reduce capital gains realized for an investor who purchased multiple sets of…

A transfer of retirement fund assets to the spouse of the deceased. The transfer is generally done in one of two ways. The first way is for the retirement…

An ad valorem or flat rate charged on certain documents. This is an extra charge placed on documents.

A base amount of income that is not subject to tax and that can be used to reduce a taxpayer's adjusted gross income (AGI). A standard deduction can only…

A set rate the IRS allows for each mile driven by the taxpayer for business, charitable, medical or moving purposes. The standard mileage rate can be taken…