Definition
Taxable year
The calendar or fiscal year for which taxable income is calculated. The taxable year for most individuals is the 12-month calendar year ending December 31.
RELATED TERMS ...
Taxable year
The 12-month period an individual uses to report income for income tax purposes. For most individuals, their tax year is the calendar year.
If the MTM election is made, then the result is that a constructive sale of the trader's securities occurs on the last business day of the taxable year. The expression is that all positions are "marked to market," hence the name of the election.
The domestic manufacturing deduction for a taxable year is limited to 50 percent of the wages by the taxpayer during the calendar year that ends in such taxable year.
A capital expenditure refers to the money spent by company to buy new fixed assets or upgrade an existing fixed asset that will benefit its business beyond the taxable year.
The reduction in a U.S. tax liability because of taxes accrued or paid to a foreign government during the same taxable year.
Learn more about foreign tax credit
» foreign tax credit business definition ...
I hereby elect to use the mark-to-market method of accounting under section 475(f) of the Internal Revenue Code for my trade or business or trading securities. The first year for which the election is effective is the taxable year beginning January 1, ...
in which the taxpayer is only "passively" involved in, such as income from portfolios and tax refunds. The "loss" deductions come into play when the amount of "passive deductions" exceed "passive activity gross income" for the taxable year.
to partially cover the expenses of purchasing the van. Overall, this means the operating expenses for the calendar year will be easier to cover. The end result is that the company gets a nice tax break and a new van, all within one taxable year.
 See also: Income, Investment, Account, Capital, Long
|
