Terms with Category Taxation
- Circuit Breaker — Definition,
- 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.
- 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.
- Classified Property Tax — Definition,
- A local government's levy on real estate that varies depending on the use of the property. Usually, commercial property is taxed more heavily than residential property where a classified property tax exists.
- Constructive Receipt — Definition,
- The idea in which a taxpayer does not actually have to take possession of money for it to be taxable. An example of this is when savings account interest is reinvested rather than sent to the account holder as a separate payment. In this case, the account holder constructively received the interest because the earnings were credited to his account and could have been taken out at the owner's discretion. As such, the earnings are taxable.
- Conveyance Tax — Definition,
- A tax on the transfer of real property.
- Cost Basis — Definition,
- The original price paid for an investment which is also known as the basis or tax basis. The cost basis includes any commissions or fees paid when the investment was purchased.
- Cost of Goods Sold (COGS) — Acronym,
- An expense that appears on a business's income statement and represents the inventory cost of the goods sold during a particular period.
- Deductions — Definition,
- Expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000.
- Deferred Annuity — Definition,
- An annuity that makes payments to the annuitant at some date in future instead of immediately.
- Deficit — Definition,
- When expenses surpass income or liabilities surpass assets.
- Dependent — Definition,
- A person who relies on someone else for financial support. If you have dependents, you can claim them as exemptions, which will reduce the amount of your income that is taxed.
- Direct Deposit (DD) — Acronym, Important,
- An automatic deposit of wages or benefits to a customer's bank account.
- Direct Tax — Definition,
- A tax that is paid straight to the government.
- Dividend — Definition,
- Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
- Earned Income — Definition,
- Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
- Electronic Filing (NETFILE, EF) — Acronym, Very Important,
- Taxpayers can now file their tax information with personal computers and tax preparation software. The information goes directly to Revenue Canada and they can directly deposit refunds into the taxpayer's bank account.
- Escrow — Definition,
- An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
- Escrow Account (EA) — Acronym,
- An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
- Estate Planning — Definition,
- The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
- Exchange — Definition,
- A trade of property for other property or services. Like-kind property exchanges are a popular tax-deferral strategy.
- Expense — Definition,
- Costs incurred through a business's operations.
- Expensing — Definition,
- Government tax law allows individuals to expense certain business activities.
- 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.
- Fiscal Policy — Definition,
- The use of government spending and taxation policies to influence the economy.
- Fiscal Surplus — Definition,
- When the government receives more in revenue than it spends over the course of the year.
- Fixed Assets (FA) — Acronym, Important,
- Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.
- Fixed Expenses (FE) — Acronym,
- Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
- Full Market Value — Definition,
- In reference to property taxes, usually refers to the tax rate applied to 100 percent of the property's value. Also full cash value.
- Garnishment — Definition,
- An amount withheld from your pay and remitted to another party, such as a creditor. You must include in your taxable income any amount that was garnished from your pay, because the full amount of your pay is considered to have been received by you even though some was withheld to pay your debts.
- Goods and Services Tax (GS, GST) — Acronym, Canada,
- A sales tax that applies in all Canadian provinces charged at 5% (as of 2012).
➥ Bank account transaction code. - Gross Income — Definition,
- Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
2.
Circuit Breaker -
Cost of Goods Sold
Cost of Goods Sold
