Class Life Asset Depreciation refers to the tax guidelines that determine the period over which different types of assets can be depreciated. The IRS uses these guidelines to assign a specific 'class life' to asset categories, dictating how many years over which the depreciation can be calculated.
Entertainment expenses and business meals are deductible only if they are 'directly related to' or 'associated with' the active conduct of a taxpayer's trade or business. These expenses are deductible to the extent of 50% of cost, excluding any lavish or extravagant costs.
Moving Expense Deduction refers to the tax deduction available for certain expenses incurred by an individual when relocating to a new residence for employment purposes. The deduction is permitted if the taxpayer's new job is located at least 50 miles farther from the former residence than the previous job.
A principal place of business refers to the primary location where an individual conducts the administrative or management activities of a trade or business. It is a key criterion for determining if a home office is tax-deductible.
A qualified organization is an entity to which individuals or businesses can make deductible charitable contributions according to tax regulations.
In taxation, the Safe Harbor Rule provides guidelines established by the IRS for certain transactions, indicating specific parameters a taxpayer can observe to ensure favorable tax treatment or avoid an unfavorable one. An example is a list of parameters that, if followed, will assure sale and leaseback treatment rather than a financing arrangement.
The Support Test is one of the five criteria used to determine whether an individual can be claimed as a dependent on a taxpayer's tax return.
Travel and Entertainment (T&E) expenses are ordinary and necessary expenses incurred while traveling away from home for business purposes, subject to specific tax regulations.
