Sunday 25 June, 2017
Return to Copper Canyon Tax and Accounting Services main page

Useful Tax Glossary and Definitions

As a courtesy to our clients, we have compiled a comprehensive list of common tax terms and definitions for quick reference.

Tax Lingo Troubles?

Payroll Service

We make payday easy and accurate. Just send us the hours and we take care of the rest. Call us for a free estimate 520.344.4149
Home > Information Center > Glossary

Government Sites

Tax Sites

Glossary of Terms

All | 0-9 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | W

T

Term Definition
Tangible asset

Assets having a physical existence, such as cash, equipment, and real estate; accounts receivable are also usually considered tangible assets for accounting purposes.

Tax attributes

When debts are canceled in bankruptcy cases, the canceled amount is excluded from gross income. Tax attributes are certain losses, credits, and property basis that must be reduced to the extent of the exclusion.

Tax deferral

Shifting income to a later year, such as where you defer taxable interest to the following year by purchasing a T-bill or savings certificate maturing after the end of the current year. Investments in qualified retirement plans provide tax deferral.

Tax home

An individual's primary place of work or residence. This is used when determining tax for travel or transportation expenses.

Tax identification number (TIN)

For an individual, his or her Social Security number; for businesses, fiduciaries, and other non-individual taxpayers, the employer identification number.

Tax preference items

Items that may subject a taxpayer to the alternative minimum tax (AMT).

Tax year

A period (generally 12 months) for reporting income and expenses.

Tax-sheltered annuity

A type of retirement annuity offered to employees of charitable organizations and educational systems, generally funded by employee salary-reduction contributions.

Taxable income

Net income after claiming all deductions from gross income and adjusted gross income, such as IRA deductions, itemized deductions, or the standard deduction, and personal exemptions.

Tenancy by the entireties

A joint tenancy in real property in the name of both husband and wife. On the death of one tenant, the survivor receives entire interest.

Tenants in common

Two or more persons who have undivided ownership rights in property. Upon death of a tenant, his or her share passes to his or her estate, rather than to the surviving tenants.

Testamentary trust

A trust established under a will.

Trial Balance

A trial balance is a list and total of all the debit and credit accounts for an entity for a given period – usually by month or year. The format of the trial balance is a two-column schedule with all the debit balances listed in one column and all the credit balances listed in the other. The trial balance is prepared after all the transactions for the period have been entered and posted to the General Ledger.

Trust

An arrangement under which one person transfers legal ownership of assets to another person or corporation (the trustee) for the benefit of one or more third persons (beneficiaries).