An unincorporated business or income-producing entity organized by two or more persons. A partnership is not subject to tax but passes through to the partners all income, deductions, and credits, according to the terms of the partnership agreement.

Rules that limit the deduction of losses from passive activities to income from other passive activities. Passive activities include investment rental operations or businesses in which you do not materially participate.

A taxable distribution made by a cooperative to its members or patrons.

A deduction method that applies a fixed percentage to the gross income generated by mineral property.

Tax term for interest on personal loans and consumer purchases. Such interest is not deductible.

The time when a depreciable asset is ready to be used. The date fixes the beginning of the depreciation period.

Charges to the homeowner at the time of the loan. A point is equal to 1 percent. Depending on the type of loan, points may be currently deductible or amortized over the life of the loan.

Withdrawals before age 59½ from qualified retirement plans are subject to penalties unless specific exceptions are met.

On a sale of a principal residence, you may avoid tax under the rules.

A written determination issued to a taxpayer by the IRS that interprets and applies the tax laws to the taxpayer's specific set of facts. A letter ruling advises the taxpayer regarding the tax treatment that can be expected from the IRS in the circumstances specified by the ruling. It may not be used or cited as precedent by another taxpayer.

Property held in a decedent's name passing by will.

A defined contribution plan under which the amount contributed to the employees' accounts is based on a percentage of the employer's profits.

If your provisional income exceeds a base amount, part of your Social Security benefits may be subject to tax.