Terms with Category Taxation
- Moving Expenses — Definition,
- Expenses incurred when you moved in connection with your job and are deductible if they are the reasonable costs of moving yourself, your family and your possessions. You can no longer deduct the cost of meals while moving.
- Net Cash Flow (NCF) — Acronym,
- Incremental after-tax income plus depreciation expense resulting from investment.
- Net Income (NI) — Acronym, Very Important,
- The difference between effective gross income and expenses. The term is qualified as net income before depreciation and debt.
- Net Interest Margin (NIM) — Acronym,
- Net interest income (the difference between interest income and interest expense) as a percentage of average total assets.
- Net Operating Loss (NOL) — Acronym, Very Important,
- A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
- Net Worth — Definition,
- The total value of all assets, such as house, car, furniture and investments, minus all debts, such as mortgages and credit card bills.
- Non-dischargeable Debt — Definition,
- Debt that cannot be eliminated in bankruptcy such as Federal taxes.
- Non-refundable Credit — Definition,
- Tax credits reduce your tax liability dollar-for-dollar. Non-refundable credits can get your tax bill down to zero.
- Non-Resident Alien (NRA) — Acronym,
- A person who is not a permanent resident or a citizen of Canada, and who is generally taxed on income from Canadian resources.
- Not-for-Profit — Definition,
- An Organization operated solely for: social welfare, civic improvement, pleasure or recreation, or any other purpose except profit.
- Notice of Assessment (NOA) — Acronym, Canada, Important,
- A form the federal government issues when personal taxes are complete. A notice of assessment shows a breakdown of the given years income along with the balance owing or refund.
➥ Canada Revenue Agency's T451 tax form. - Operating Cash Flow (OCF) — Acronym,
- The money a company generates from its business operations. This revenue excludes costs from certain investments.
- Operational Expenses (OpEx) — Abbreviation,
- Costs accruing from a business's business operations.
- Ordinary Dividends — Definition,
- The distribution of a company's profits that are subject to full taxation.
- Ordinary Income — Definition,
- Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.
- Passive Activity — Definition,
- An activity in which a person does not materially participate such as real estate rentals and limited partnerships.
- Passive Income — Definition,
- Income coming in on a regular basis, with little or no maintenance.
- Passive Loss — Definition,
- Loss from a passive activity. Passive loss rules limit the amount of passive loss you can deduct to the total of your other income from passive activities.
- Payout Phase — Definition,
- The phase of a deferred annuity where the annuity begins to make payments to the annuitant.
- Payroll Taxes — Definition,
- A tax based on wages and salaries that is deducted from employees pay cheques.
- Personal Consumption Spending — Definition,
- What households collectively spend on goods and services.
- Personal Disposable Income — Definition,
- Personal income minus personal income tax payments. Also called "take-home pay."
- Personal Property Taxes — Definition,
- Tax paid on real property, intangible, or tangible property. To differentiate between real property and personal property, the tax assessing official must consider the manner in which property is attached to or secured at the location. Also called property taxes.
- Personal Savings — Definition,
- The difference between personal disposable income and personal consumption spending.
- Put own money away.
- Pre-paid Expenses — Definition,
- also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
- Pre-paid Interest — Definition,
- Interest that a borrower pays before it is due, usually to save taxes.
- Pre-Tax Operating Income (PTOI) — Acronym,
- The operating income generated by a company, less expenses, before taxes have been paid.
- Principal, Interest and Taxes (PIT) — Acronym, Important,
- Principal, interest and taxes. The components of a monthly mortgage payment.
- Principal, Interest, Taxes, and Insurance (PITI) — Acronym,
- Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
- Private Annuity — Definition,
- An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
