Tax Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Legally separated

A husband and wife who are required to live apart from each other by the terms of a decree of separate maintenance. Payments under the decree are deductible by the payor and taxable to the payee as alimony.

Like-kind exchange

An exchange of similar assets used in a business or held for investment on which gain may be deferred.

Lump-sum distribution

Payments within one tax year of the entire amount due to a participant in a qualified retirement plan. Qualifying lump sums may be directly rolled over tax free, or, in some cases, are eligible for current tax under a favorable averaging method.

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