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Home Dictionary L Listed Property A listed property is any depreciable asset that is subject to a special set of tax rules if it is used primarily for commercial purposes. To be considered a listed property, an asset must be used for commercial purposes at least 50% of the time. The listed property can also be used for personal purposes during the remaining time. Examples of property listed include vehicles, computers and recording equipment. 83(b) Election
September 25, 2022 Choice 83(b) is an Internal Revenue Code (IRC) provision that gives an employee or startup founder the ability to pay taxes on the total fair market value of the restricted shares at the time of grant. Federal Unemployment Tax Act (FUTA)
September 25, 2022 The Federal Unemployment Tax Act (FUTA) is a law that imposes a payroll tax on any business with employees; the income generated is used to fund unemployment benefits. Form 2106 Employee Business Expenses
September 25, 2022 Form 2106 is used by employees to deduct ordinary and necessary expenses related to their work. Franchise Tax
September 25, 2022 A franchise tax is a fee paid by certain businesses that want to do business in certain states. Contrary to what the name implies, a franchise tax is not a franchise tax. Low-Income Housing Tax Credit
September 25, 2022 The Low Income Housing Tax Credit (LIHTC) subsidizes the creation of low income housing by offering these projects a 10-year tax credit. Nonpassive Income and Losses
September 25, 2022 Non-passive income and losses are any income or losses that cannot be classified as passive. Pigovian Tax
September 25, 2022 The Pigovian tax is designed to tax producers of goods or services that create adverse side effects on society. Schedule K-1 Federal Tax Form
September 25, 2022 Business partners, S corporation shareholders, and investors in limited partnerships and certain ETFs use Appendix K-1 to report their income, losses, and dividends. Tangible Personal Property
September 25, 2022 Tangible personal property includes a wide range of equipment, from small office equipment to light trucks and buses. Tax Loss Carryforward
September 25, 2022 Tax loss carryforward allows taxpayers to use a taxable loss in the current period and apply it to a future tax period. 8(a) Firm
September 25, 2022 8(a) firms are small businesses that are owned and controlled by socially and economically disadvantaged individuals. Articles of Incorporation
September 25, 2022 The memorandum of association is the documents filed with a government body (usually the state), which means the creation of a corporation. Bootstrap
September 25, 2022 Bootstrapping is the creation and management of a company using only personal finance or operating income. Business Process Outsourcing
September 25, 2022 Business Process Outsourcing (BPO) uses third party vendors or subcontractors to perform certain parts of their business operations. Catalog of Federal Domestic Assistance (CFDA)
September 25, 2022 The Federal Home Care Directory (CFDA) was a comprehensive listing of federal assistance programs. Cost, Insurance and Freight (CIF)
September 25, 2022 “Cost, insurance and freight” (CIF) is an international trade term that applies only to goods shipped by water or ocean. Cottage Industry
September 25, 2022 Home-based production is a small-scale production, often performed outside a person’s home. Crowdfunding
September 25, 2022 Restrictions apply to who is allowed to fund a new business and how much they are allowed to contribute. Customer to Customer (C2C)
September 25, 2022 Client to Client (C2C) is a business model that allows clients to trade with each other, often in an online environment. Deliverables
September 25, 2022 The word “results” is a project management term describing the quantifiable goods or services to be delivered after the completion of the project. Employers' Liability Insurance
September 25, 2022 Employers’ liability insurance covers companies against expenses and claims from employees that are not covered by workers’ compensation. Engagement Letter
September 25, 2022 A letter of engagement defines a business relationship between two parties. External Economies of Scale
September 25, 2022 External economies of scale - these are factors that contribute to the development of business, which are manifested outside the company, but within the same industry. Family Limited Partnership (FLP)
September 25, 2022 A family limited partnership (FLP) is a business or holding company owned by two or more family members. Federal Insurance Contributions Act (FICA)
September 25, 2022 Individuals’ contributions to FICA pay for current benefits and form future benefits that will be due to them.