Accident and Health Benefits refer to fringe benefits provided for accidental injury, accidental death, or sickness. These benefits typically cover payment of medical, surgical, and hospital expenses, along with income payments.
An inheritance tax relief available on the transfer of agricultural property under specified conditions, with relief rates at 50% or 100% depending on possession status and leasing history.
The election to waive exemption, also known as the option to tax, refers to the choice by a taxpayer to charge VAT on supplies that are otherwise exempt. This mechanism allows businesses to reclaim input VAT, which can benefit their cash flow and overall financial performance.
An exempt organization is a type of entity that is exempt from federal income tax under the Internal Revenue Code (IRC) based on its purpose and organizational structure. These organizations are commonly known as nonprofits or not-for-profits.
Exempt status refers to a special designation that frees certain organizations, such as churches, government organizations, and community chests, from paying taxes. However, these organizations must submit an application for exempt status and file information returns even when no tax is due.
The gift tax is a graduated excise tax levied on the donor of a gift by the federal government and most state governments, which comes into play when assets are transferred from one person to another.
The lifetime exemption pertains to the total amount of gifts and estate transfers one can make without incurring federal gift or estate taxes.
A bond issued by a state or local government body such as a county, city, town, or municipal authority. Typically, the interest earned on municipal bonds is generally not taxable by the U.S. government, nor in the jurisdiction that issued it.
Non-taxable income refers to types of income specifically exempted from taxation by government regulations. Understanding which types of income are non-taxable can significantly affect an individual’s or business’s tax obligations.
A Not-For-Profit Organization, also known as a nonprofit, is an organization in which no stockholder or trustee shares in profits or losses. These organizations usually exist to accomplish charitable, humanitarian, or educational purposes.
A fund set up by a corporation, labor union, governmental entity, or other organization to pay the pension benefits of retired workers. Pension funds invest billions of dollars annually in the stock and bond markets, playing a significant role in the financial markets. Earnings on the investment portfolios of pension funds are tax-exempt.
A principal private residence (PPR) refers to an individual's main private dwelling house where they typically reside the majority of the time. Gains arising from the sale of a PPR are usually exempt from capital gains tax (CGT).
A Qualified Organization is a term primarily used in tax law to denote entities that meet specific regulatory criteria and are eligible for certain tax exemptions and privileges.
A specific kind of nonprofit organization in the United States exempted from federal income tax under section 501(c)(3) of the Internal Revenue Code. These organizations must fulfill certain criteria related to purpose, earnings, lobbying, and political activities.
A tax advantage is a benefit that individuals and businesses experience when they are eligible for a reduction in a charge to taxation, which can arise through exemptions, deductions, credits, or deferrals.
A tax exemption refers to a statutory provision which reduces or eliminates the obligation to pay a financial charge (tax) that would otherwise be imposed by a governing body.
A tax-free designation refers to any payment, allowance, or benefit that is not subject to taxation, providing financial advantages to recipients without impacting their taxable income.
