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Tangible Asset - ASSETS having a physical existence, such as cash, land, buildings, machinery, or claims on property, investments or goods in process. (See INTANGIBLE ASSETS.)
Tax - Charge levied by a governmental unit on income, consumption, wealth, or other basis.
Tax Court - The U.S. Tax Court is a legislative court functioning to adjudicate controversies between taxpayers and the IRS arising out of deficiencies assessed by the IRS for INCOME, GIFT, ESTATE, windfall profit and certain EXCISE TAXES. It has no jurisdiction over other taxes such as employment taxes. Various sales taxes and certain excise taxes.
Tax Credit for the Elderly and Disabled - Taxpayers age 65 or older or those under 65 who are retired with permanent and total disability are eligible to claim a credit to reduce the amount of their tax liability. It is designed primarily to benefit those individuals who receive small amounts of retirement INCOME. Each taxpayer is allocated an initial base amount based on his or her filing status determining the credit. The base amount is then reduced by the amount of nontaxable income, or is phased out for taxpayers whose ADJUSTED GROSS INCOME exceeds certain levels.
Tax Lien - ENCUMBRANCE placed on property as security for unpaid taxes.
Tax Shelter - Arrangement in which allowable tax deductions or EXCLUSIONS result in the deferral of tax on INCOME that would otherwise be payable currently.
Tax Year - The period used to compute a taxpayer"s TAXABLE INCOME is tax year. It is an annual period that is either a calendar year , FISCAL YEAR or fractional part of a year for which the return is made.
Taxable Income - Taxable income is generally equal to a taxpayer"s ADJUSTED GROSS INCOME during the TAX YEAR less any allowable EXEMPTIONS and deductions.
Taxpayer Identification Number (TIN) - Any individual or other taxable entity that is required to file a return, statement or any other document with the IRS must indicate his (or its) taxpayer identification number. For an individual, the social security number is used, and if you do not have a social security number, the IRS will assign you a TIN. A federal or employer ID number is assigned to other types of entities and will use that as their TIN.
Tenancy-in-Common - Co-ownership of property. In a valid tenancy-in-common, a deceased co-owner"s title passes to his or her heirs without being included in the estate of the deceased co-owner.
Term Loan - Loan for a specified time period.
Timing of Tests of Control - The AUDITOR must perform tests of controls over a period of time that is adequate to determine whether, as of the date specified in management"s report, the controls necessary for achieving the ives of the control criteria are operating effectively.
Total Gain - Excess of the proceeds realized on the sale of either INVENTORY or noninventory goods.
Trade Date - Date when a SECURITY transaction is entered into, to be settled on at a later date. Transactions involving financial instruments are generally accounted for on the trade date.
Transferred Basis - A transferred basis is the basis of property in the hands of a transferor, donor or GRANTOR. In this sense a prior owner"s basis in the property is transferred to the taxpayer. Transferred basis occurs in the following transactions: GIFTS, transfers in trusts, certain transfers to controlled CORPORATIONS, contributions to PARTNERSHIPS and LIQUIDATING distributions from a corporation.
Transferee Liability - A person may be held LIABLE for another taxpayer"s delinquent taxes if:
1. The transferee received assets of the transferor-taxpayer; and
2. The transferor was INSOLVENT at the time or was rendered insolvent by that transfer or related series of transfers.
However the insolvency requirement does not apply to GIFT taxes. The transferee is only liable to the extent of the value of the property received from the transferor. Thus, transferee liability merely provides a means for the IRS to recover any assets the transferor-taxpayer attempts to transfer to avoid paying taxes.
Treasury Bill - Short-term obligation that bears no INTEREST and is sold at a discount.
Treasury Bond - Long-term obligation that matures more than five years from issuance and bears INTEREST.
Treasury Instruments - Direct financial obligations of the
Treasury Note - Intermediate-term obligation that matures one to five years from issuance and bears INTEREST.
Treasury Stock - Stock reacquired by the issuing company. It may be held indefinitely, retired, issued upon exercise of STOCK OPTIONS or resold.
Troubled Debt Restructuring - Agreement between DEBTOR and CREDITOR which amends the terms of a DEBT that has little chance of being paid in accordance with its contractual terms. The agreement may involve the transfer of ASSETS in full or partial satisfaction of the debt.
Trust - Ancient legal practice where one person (the GRANTOR) transfers the legal title to an ASSET, called the principal or corpus, to another person (the TRUSTEE), with specific instructions about how the corpus is to be managed and disposed.
Trustee - Person who is given legal title to, and management authority over, the property placed in a trust.
