Tag: taxpayer

Offer In Compromise

DefinitionThe Offer in Compromise program, in the United States, is an Internal Revenue Service program under which allows qualified individuals with an unpaid tax...

Abusive Tax Shelter

What is 'Abusive Tax Shelter' An investment scheme that claims to reduce income tax without changing the value of the user's income...

Ratable Accrual Method

What is 'Ratable Accrual Method' A method for determining when and how much income was earned over a period of time. The...

Charitable Contributions Deduction

Charitable contributions deduction is a tax incentive offered to individuals that donate sums to a recognized charity. The tax deduction allows taxpayers to reduce...
Cancellation of debt

Cancellation Of Debt (COD)

What is Cancellation of Debt (COD)? Cancellation of debt (COD) is the forgiveness of debt. This can occur when a lender agrees to cancel all...

Passive Activity

What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal...

Passive Activity Loss Rules

What is 'Passive Activity Loss Rules' A set of rules that prohibits using passive losses to offset earned or ordinary income. Passive...

Qualified Production Activities Income (QPAI)

Qualified Production Activities Income (QPAI) What is 'Qualified Production Activities Income - QPAI' Income derived from domestic production that qualifies for...

Qualified Exchange Accommodation Arrangements

What is 'Qualified Exchange Accommodation Arrangements' A strategy used in some 1031 exchanges where a third party, known as an "accommodation party,"...
Qualifying Relative

Qualifying Relative

What is 'Qualifying Relative' A federal income tax designation that allows a taxpayer to claim as a dependent someone for whom he or she provided...

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