A Charitable Remainder Trust is an irrevocable trust that pays income to one or more individuals until the grantor's death or for a specified number of years, after which the remaining assets pass to a designated charity.
A complex trust is a type of trust that can either distribute or retain income according to its governing instrument or state law, or has a charitable beneficiary. It is entitled to only a $100 exemption.
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.
DINKs is an acronym for Dual-Income, No Kids, referring to a family unit where there are two incomes and no children. It often includes couples who collectively earn higher discretionary incomes.
A dividend warrant is a cheque issued by a company to its shareholders that provides details of dividends paid, including tax deducted and the net amount payable.
Understanding the concept of 'franked' in accounting, particularly within the context of dividends, and its implications on tax liabilities.
Guaranteed payments for capital refer to payments made to a partner by a partnership, determined without regard to partnership income, specifically for the use of that partner's capital.
An income beneficiary is an individual or entity who is entitled to receive income generated by an estate or trust, rather than the principal property (corpus).
Income groups are collections of consumers or other entities that are categorized based on their incomes. This classification allows for the analysis of economic behaviors and the targeting of policies or products to specific income segments.
A graphic depiction of income distribution across the population, indicating the degree of economic inequality.
The Marginal Product Theory of Distribution explains how income is distributed among the factors of production based on the marginal product of each factor. This theory asserts that each factor, such as labor and capital, is compensated according to its contribution to the market value of the product.
A Master Limited Partnership (MLP) is a type of business organization that combines the tax benefits of a partnership with the liquidity of publicly traded securities.
Net Dividend refers to the dividend paid by a company to its shareholders after excluding the tax credit received by the shareholders.
Pareto's Law, also known as the 80-20 Rule, posits that roughly 80% of effects come from 20% of the causes. In economics, it highlights income distribution where a small percentage of the population controls the majority of the income. This principle is essential for understanding resource allocation, inequality, and economic strategies for improving the lot of the poor.
A financial structure that primarily involves an oil or gas company spinning off ownership of an oil-producing property to shareholders, allowing for direct revenue distribution without corporate taxation.
A simple trust is a legal arrangement under which the trust must distribute all of its income to beneficiaries annually. It is subject to specific tax regulations and benefits from a $300 standard deduction.
Subchapter J of the Internal Revenue Code concerns the taxation provisions related to estates, trusts, beneficiaries, and decedents. It outlines the rules and regulations for income distribution, fiduciary responsibilities, and tax computation for these entities.
