Terms with Tag Taxes

  • Area Median Gross Income (AMGI)Acronym, United States,
      A US taxation term.
    • Advance Pricing Agreement = Advance Pricing Arrangement (APA)Acronym,
      • Capital Gain (CG) Acronym, Important,
        • The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
      • Comprehensive Integrated Tax Coordination Agreement (CITCA)Acronym, Canada,
        • Money Laundering Prevention (MLP)Acronym,
          • Home Renovation Tax Credit (HRTC)Acronym, Canada, Important,
            • Capitalization Definition,
              • An estimate of the value of a rental or commercial property using the rate of return on investment and the property's annual net operating income.
            • Ontario Child Care Supplement (OCCS)Acronym, Ottawa, Ontario, Canada,
              • A tax-free monthly payment for low- to moderate-income working families with children under seven years of age in Ontario.
            • Return Definition,
              • Any increase in value or in income you earn on purchase or investment.
            • Exchange Definition,
              • A trade of property for other property or services. Like-kind property exchanges are a popular tax-deferral strategy.
            • Business Interest Expense Definition,
              • Interest acquired in business operations can be deducted as a business expense.
            • Net Income Before Tax (NIBT)Acronym,
              • Property Tax Definition,
                • A levy by a city on real estate and personal property whose amount varies depending on the property's value.
              • Net Income After Taxes (NIAT)Acronym,
                • Yukon Small Business Investment Tax Credit (YSBITC)Acronym, Yukon, Canada,
                  • Direct Tax Definition,
                    • A tax that is paid straight to the government.
                  • Passive Activity Definition,
                    • An activity in which a person does not materially participate such as real estate rentals and limited partnerships.
                  • Filing Extension Definition,
                    • An additional amount of time to file your return. A filing extension, however, does not give you more time to pay your taxes.
                  • Ordinary Dividends Definition,
                    • The distribution of a company's profits that are subject to full taxation.
                  • Cash Method Definition,
                    • The form of accounting in which you report income in the actual year you receive it and deduct expenses in the year you pay. Most individuals use this method. Under this system, if you built a deck and billed the client in December 1999 but didn't receive the cheque until January 2000, it would be counted as 2000 income, not 1999.
                  • Corporations Tax Act (CTA)Acronym, Canada,
                    • Canadian Advocates for Tax Awareness (CAFTA)Acronym, Ottawa, Ontario, Canada,
                      • Capital Loss Definition,
                        • When an asset is sold for less than what you paid, or less than its adjusted basis, it is a capital loss. However, when it comes to taxes a capital loss is not always bad because you can use it to reduce the amount of income being taxed by the amount of the loss, up to $3,000 per year. If your loss is more significant, the excess (or capital loss carryover) can be carried forward indefinitely until the total loss is used.
                      • Anti-Money Laundering Regulation (AMLR)Acronym,
                        • Income-splitting Definition,
                          • A financial strategy used for tax purposes to reduce the overall tax burden on a family. Income is shifted from one family member to another who is in a lower tax bracket, so the income is taxed at the lower rate to save the family money.
                        • Natural Area Protection Tax Exemption Program (NAPTEP)Acronym, Victoria, British Columbia, Canada,
                            Property tax incentive program.
                          • Registered Education Savings Plan (RESP) Acronym, Canada, Very Important,
                            • An investment vehicle used for a child's post-secondary education.
                            RESPs are offered by most financial institutions in Canada.
                          • Ontario Sales Tax Credit (OSTC)Acronym, Ottawa, Ontario, Canada,
                            • Circuit Breaker Definition,
                              • An electrical device used to turn power off and on in sectors of a building and to limit the flow of electricity through a circuit for safety purposes.
                              • A tax credit that reduces property taxes for the elderly and permanently disabled. The credit is dependent on the amount of income earned which means the more you make, the lower the credit.
                            • General Services Support Estimate (GSSE)Acronym,
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