for Individuals
A type of trust used in estate planning to minimize taxes on large financial gifts to family members by which the individual (grantor) establishing the trust pays a tax when the trust is established.
What is a GRAT?
A (non-U.S.) consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale.
What is Value Added Tax or VAT?
An Internal Revenue Service (IRS) tax form issued annually for an investment in a partnership.
What is a k-1?
The price that an asset would sell for on the open market?
What is Fair Market Value?
Shares of a qualified small business treated favorably for capital gains purposes if both the investor and the company meet certain requirements.
What is Qualified Small Business Stock or QSBS?
The Bill & Melinda Gates Foundation is the largest one of these in the U.S. with over $38 billion in assets.
What is a private foundation or PF?
When a company's deductions exceed taxable income in a given year, this can be used to benefit the company by reducing taxable income in future tax years.
What is a Net Operating Loss or NOL carryover?
An economically distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.
What is a Qualified Opportunity Zone or QOZ?
An independent appraisal of the fair market value of a private company's common stock, or the stock reserved for founders and employees. This valuation determines the cost to purchase a share.
What is 409a?
A loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis.
What is the Paycheck Protection Program or PPP loan?
Under the tax law, certain tax benefits can significantly reduce a taxpayer's regular tax amount. This term applies to taxpayers with high economic income by setting a limit on those benefits. It helps to ensure that those taxpayers pay at least a minimum amount of tax.
What is Alternative Minimum Tax or AMT?
A U.S. tax on earnings that exceed a 10 percent return on a company's invested foreign assets.
What is GILTI or Global Intangible Low-Taxed Income?
The framework that includes classes of fund partners, management fees, investment horizons, and other key factors laid out in a limited partnership agreement
What is the fund structure?
This is the calculation of the fair market value of an interest in a closely held entity?
What is an Estate and gift?
A $2.2 trillion economic stimulus bill passed by the 116th U.S. Congress and signed into law by President Donald Trump on March 27, 2020 in response to the economic fallout of the COVID-19 pandemic in the United States.
What is the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act?
A tax-advantaged investing tool that individuals use to earmark funds for retirement savings.
What is an Individual Retirement Account (IRA)?
A new limitation set by TCJA on the interest expense deduction impacting business entities with an average gross receipts above $25M
What is the change on Section 163(j)?
Income received from investment assets (before taxes) such as bonds, stocks, mutual funds, loans and other investments (less related expenses).
What is Net Investment Income or NII?
An accounting practice that represents the price that one division in a company charges another division for goods and services provided.
What is transfer pricing?
A congressional revenue act of the United States signed into law by President Donald Trump which amended the Internal Revenue Code of 1986.
What is the Tax Cuts and Jobs Act of 2017 or TCJA?
This Internal Revenue Code section provides a deduction, for U.S. federal income tax purposes, for expenses incurred in investment activities.
What is Section 212?
A deduction up to 20% of qualified business income (QBI) that can be taken by individuals and by some estates and trusts from a domestic business operated as a sole proprietorship or through a partnership, S corporation, trust, or estate.
What is Sec. 199A?
A share of the profits of an investment paid to the investment manager in excess of the amount that the manager contributes to the partnership
What is Carried Interest?
The process of determining the fair market or present value of investments in marketable securities such as stocks, bonds and options; tangible assets like buildings and equipment; or intangible assets such as brands, patents and trademarks.
What is Asset Valuation?
It is among the most important tax incentives offered to businesses in the United States. Many states offer similar incentives that enhance the value of this important benefit.
What is R&D Tax Credits?