An intermediate step in calculating taxable income, AGI is the amount used for computing deductions based on, or limited by, a percentage of income, such as medical expenses, charitable contributions, and miscellaneous itemized deductions. This amount is determined by subtracting from gross income any business expenses and other deductions, such as KEOGH payments, alimony payments, and IRA contributions.
An itemized deduction allowed for donations made to qualifying charities. Several limitations apply to this deduction, especially for noncash property donations.
Charitable contributions are donations made to qualified organizations that can be claimed as a deduction on your tax return. These contributions can provide both societal benefits and potential tax savings for individuals and businesses.
The closing price, also known as the closing quote, refers to the price at which the last transaction of a trading session on an organized securities exchange occurs. This price is critical for valuation purposes in various financial contexts, such as charitable contributions and estates.
Items that are eliminated from separate taxable income, computed on a consolidated basis, and combined with the aggregated separate taxable income (for example, net operating loss, net capital gain or loss, total charitable contributions).
Contributions in the context of finance and taxation refer to payments made by individuals or businesses, either for charitable purposes or as required unemployment taxes. Understanding the implications of these contributions is crucial for effective financial planning.
A partner is a member of a partnership, which could be a syndicate, association, pool, joint venture, or another unincorporated organization. Partners generally report their pro rata share of partnership income and deductions on their personal tax returns.
Congressional pension reform legislation designed to encourage individual retirement savings and to make employer-funded plans subject to stricter regulation. Provisions also affect charitable contributions, long-term care, college savings plans, and assistance to employees in setting up 403(b) and 401(k) plans.
Donations for political or charitable purposes made by an organization. Under the Companies Act, a disclosure of such a donation has to be made by companies that are not wholly owned subsidiaries and have given in aggregate more than £200 in the financial year.
An agreement to receive or participate in a service, product, or offering, typically involving periodic payments or commitments.
A tax shield refers to allowable deductions that reduce a taxpayer's taxable income, thereby decreasing the amount of tax owed.
Taxable estate refers to the portion of a deceased person's estate that remains after deducting any allowable marital deductions, charitable contributions, and other adjustments from the adjusted gross estate. This amount is subject to estate taxes.
