A hidden asset is an item of value that is not stated or is understated on the books of a business (such as a balance sheet). Assets are often excluded for an improper purpose, such as avoiding taxation or hiding it from a bankruptcy trustee...
tax
hobby loss
A hobby loss is a loss from a business to an activity not engaged in for profit, which can be deducted against annual income. According to the Internal Revenue Service (IRS) a hobby is an activity done for enjoyment. Hobby Loss is not tax...
home office
Home office in the legal setting most commonly arises regarding the potential tax deductions under § 280A(c) of the Internal Revenue Code. Since the Tax Cuts and Jobs Act of 2017 disallowed the employee business expenses deduction until 2026...
improvement
In property and real estate law, an improvement is any positive permanent change to land that augments the property’s value. An improvement will cause positive change to the land, increase the value, and will allow the landowner to make...
incentive
An incentive is a reason or motivation that encourages parties to engage in certain conduct or to take certain actions. In the legal context, incentives are often created through laws, regulations, financial subsidies, or tax provisions. They...
incentive stock option (ISO)
Incentive stock options (ISO) refer to a set of stock options used by corporations to compensate major employees in a way that generates limited tax obligations for the employee. If structured and used correctly, an ISO can be taxed as...
incentivize
To incentivize is the act of providing a reward or benefit to encourage a particular behavior or action. This can involve offering a financial incentive, such as a bonus or a reduction in taxes, or non-monetary incentives, such as recognition...
income
Income is money or value that an individual or business entity receives in exchange for providing a good or service or through investing capital. The Haig-Simons model of income is commonly used in economics, which considers the following...
income in respect of decedent
Income in respect of decedent or “IRD” refers to any income a deceased person would have received, had they lived. For example, when a salesperson earns a commission, and dies before the commission is paid.
Depending on who...
Income Tax
Overview:
The power to collect income tax is found in the Constitution of the United States. Article 1, Section 8, Clause 1 (Also known as the Taxing and Spending Clause) sates: “The Congress shall have Power To lay and collect Taxes, Duties...