by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Passive Loss?A passive loss refers to a financial loss within an investment in any business enterprise or trade in which the investor isn’t materially involved. Passive losses can arise from investments in business partnerships, rental properties, or...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Kiddie Tax?The Kiddie Tax is a special tax law that was created in 1986, it was created to address investment tax and unearned income tax for people less than 17 years. In the United States, the kiddie tax rule is contained in the Internal Revenue Code 1. It...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Itemized Deduction?Itemized deductions are eligible expenses that can be deducted on the adjusted gross income (AGI) of taxpayers. Individual taxpayers who qualify for itemized deductions can claim the deduction on their federal income tax returns which...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Capital Loss?A capital loss is a loss that a company suffers when a capital asset or an investment decreases in value. The company usually does not realize this loss, until when the current selling price of an asset becomes lower than its initial buying...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Capital Loss Carryover?Capital loss carryover is the net loss that an investor pushes into the future tax years. The net capital loss is the amount that exceeds the capital gains after offsetting capital losses. The Internal Revenue Service allows a maximum...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What are Long-Term Capital Gain or Loss?A long-term capital gain or loss is a company’s profit or loss that originates from the sales of a long-time investment. The American tax law defines long-term capital gain as the profit the company receives after selling...
