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 59รป
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.
Jury duty is a civic duty that is hard to avoid. If you are called to serve, you are paid a nominal amount that is taxable income. But if you also receive your regular wages from your employer and must hand over your jury duty pay, you can claim a deduction for the income you don’t get to keep.
If you receive your regular pay while serving on jury duty and turn over your jury duty pay to your employer, you can claim a deduction for this action as an adjustment to gross income, even if you do not itemize your other deductions. This deduction is intended to offset your having to include the jury duty pay in income. There are no dollar limits on this deduction.
At the end of 2004 (the most recent year for statistics), 51 million taxpayers had IRAs with assets totaling $3.3 trillion.
Source: Spring Statistics of Income Bulletin
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