The Net Investment Income (NII) is the difference between a company’s total investment income and its total investment expenses. This includes interest, dividends, and other forms of investment income, minus any investment expenses such as commissions or fees. The NII can be used to measure a company’s profitability and overall financial health. It is also … Read more
The convenience of employer test definition is a test used by the Internal Revenue Service (IRS) to determine whether an employer is liable for taxes on certain employee fringe benefits. The test is based on whether the employer provides the benefit for the convenience of the employer or for the benefit of the employee. If … Read more
A luxury tax is a tax that is levied on items that are considered to be luxuries. The items that are subject to luxury tax vary from country to country, but typically include items such as jewelry, furs, and expensive automobiles. The luxury tax is usually imposed at a higher rate than the standard sales … Read more
Tax lot accounting is a method of accounting for the purchase and sale of securities that aims to minimize capital gains taxes. When an investor buys a security, the tax lot with the highest cost basis (the original purchase price) is sold first. This method is also known as first-in-first-out (FIFO) accounting. What is tax … Read more
The term “electronic filing” refers to the process of filing taxes electronically, either through a tax preparation software program or directly with the government tax agency. In most cases, electronic filing is the preferred method of filing taxes as it is faster, more accurate, and often results in a quicker refund. What is the difference … Read more
. Inheritance Tax: What It Is, How It’s Calculated, Who Pays It. How much can a parent gift a child tax free in 2022? There is no gift tax in the United States, so a parent can gift any amount of money to a child tax-free. However, if the parent dies within five years of … Read more
A transfer tax is a tax imposed on the transfer of ownership of property. The tax is based on the value of the property being transferred. Which document transfers property to the buyer quizlet? The answer to this question depends on the jurisdiction in which the property is located. In most jurisdictions, the document that … Read more
The tax-free definition is the legal definition of what income is exempt from taxation. The definition varies from country to country, but in general, it includes income from investments, such as dividends and capital gains, as well as certain types of government benefits. In the United States, the tax-free definition also includes some types of … Read more
An assessment is a tax that is levied by a government on individuals or property. It is used to finance government operations and public services. Are you assessed to tax Meaning? Yes, you are assessed to tax meaning that the government has the authority to collect taxes from you. This includes income taxes, property taxes, … Read more
A tax holiday is a period of time during which certain taxes are either not levied or are levied at a reduced rate. Tax holidays may be granted by a government in order to encourage economic activity, or they may be granted in order to commemorate a particular event. What are the five 5 types … Read more
