16 Results for 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 debt to negotiate a settle

Abusive Tax Shelter

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 or assets. Abusive tax shelters serv

Ratable Accrual Method

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 ratable accrual method can be used to comput

Charitable Contributions Deduction

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 t

Cancellation Of Debt (COD)

Cancellation Of Debt (COD) What is 'Cancellation Of Debt - COD' When a creditor forgives a debt without requiring consideration in return. The amount of debt that is forgiven by cancellati

Passive Activity

Passive Activity What is 'Passive Activity' Passive activity is activity in which the taxpayer did not materially participate in during the tax year. Internal Revenue Service (IRS) defines

Passive Activity Loss Rules

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 activity loss rules preven

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 reduced taxation. More spe

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 considerable financial

Qualified Exchange Accommodation Arrangements

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
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