by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Abusive Tax Shelter?An abusive tax shelter is a financial scheme that reduce income tax and minimize other tax liabilities. Usually, abusive tax shelters are regarded illegal and often attract fines if the Internal Revenue Service proves that they have...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Tax Shelter?Tax shelter is any legal method used by taxpayers in minimizing taxable incomes. This in turn reduces the payments made to tax collecting bodies. This can be through investment accounts or by engaging in activities or transactions that minimize...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Passive Income?Passive income is the earnings obtained from limited partnership, rental property, or other enterprise where a person is not involved actively. This income is usually taxable, like active income. However, Internal Revenue Service (IRS) sometimes...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Capital Cost Allowance?A Capital Cost Allowance (CCA) refers to the deductible tax from the depreciable assets that an individual can claim on his business. CCA is a Canadian income tax code that enable business owners claim depreciation expenses on their...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Alternative Minimum Tax?The alternative minimum tax calculation is done in parallel with the taxpayer’s regular income tax calculation. AMT has discarded numerous preferential tax provisions to benefit the taxpayer; however, it also intends to ensure...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Unitary Tax System?Unitary tax system is a taxation approach whereby the income of profits (and losses) of different branches of a corporation are calculated under one group. Unitary tax system is also called Formulary apportionment, under this system, all...
