In general, amounts on a tax return that are deductible from gross income before arriving at Adjusted Gross Income (AGI), such as IRA contributions, half of the self-employment tax, self-employed health insurance deduction, Keogh retirement plan and self-employed SEP deduction, penalty on early withdrawal of savings, and alimony paid.
Bunching refers to the concentration of gross income, deductions, or credits in one or more taxable years to maximize tax benefits.
A cafeteria plan allows employees to choose from a variety of fringe benefits, including cash, without including the chosen benefit in their gross income for tax purposes.
The conduit approach allows income or deductions to flow through to another entity, such as a partnership or trust, enabling tax liabilities to be managed at the beneficiary or partner level.
Constructive Receipt of Income is a doctrine where a taxpayer must include in gross income amounts that, though not actually received, are deemed received during the taxable year. This principle ensures that taxpayers cannot defer taxation by simply delaying the physical receipt of income.
A deduction is an amount allowed to taxpayers under the Internal Revenue Code as an offset against gross income or adjusted gross income.
Deductions from Gross Income refer to the allowable reductions from an individual's gross income to arrive at their taxable income, applicable within the framework of personal income tax.
In both insurance and taxation, exclusion rules determine what items or amounts are not covered by policies or not included in gross income, respectively.
The expense ratio is a financial metric that measures the ratio of operating expenses to gross income for real estate properties or the percentage of total investment paid by shareholders for mutual fund operating expenses and management fees.
The term 'gross' can refer to the highest amount of sales or income before deductions, or to a quantity in merchandise, specifically 12 dozen or 144 items.
Gross Income refers to the total earnings from all sources before any deductions or taxes. It encompasses income from employment, self-employment, rental property, alimony, child support, public assistance payments, and retirement benefits.
Income represents an economic benefit, encompassing money or value received over a period. It is a crucial concept in various domains like accounting, taxation, and economics.
Income shifting is a tax strategy that involves transferring gross income from one taxpayer to another, typically to a taxpayer in a lower tax bracket, in order to reduce the overall tax liability of a group or family.
The initial yield represents the gross initial annual income generated by an asset divided by the initial cost of that asset. It is commonly used in real estate and investment analysis to measure the initial return on investment.
The Percentage Depletion Method permits a taxpayer with an economic interest in a mineral deposit to deduct a specified percentage of the gross income from the deposit instead of focusing solely on cost depletion.
The standard deduction is a provision that allows taxpayers to deduct a specified amount from their gross income, thereby reducing their taxable income. This deduction is an alternative to itemizing deductions and is adjusted for inflation annually.
A tuition reduction is a benefit often provided to employees of educational institutions and their dependents, allowing for a reduction in tuition fees that is excludable from gross income.
