by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Progressive Tax?Progressive Tax is the practice of charging different income levels in accordance with the taxpayer’s ability to pay. Under Progressive Tax, lower income groups are charged a lower rate of tax while higher income groups pay taxes at a...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Accelerated Depreciation?Accelerated depreciation refers to any method of amortization/depreciation that produces higher depreciation deductions during the beginning years of a project.How Does the Accelerated Depreciation Method Work?For the fiscal and...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Ability-To-Pay Principle?The Ability to Pay Principle is a taxation principle. It states that the tax amount applied on an economic body (generally a business) should be directly proportional to that entity’s ability to pay.How Does the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Loss Carryback?Loss carryback refers to a situation where a company faces a net operating loss and decides to apply it to the tax returns of the previous year. This leads to a reduced tax bill for the year this loss is carried back to since it lowers the tax...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Listed Property?Listed property refers to assets that are depreciable in nature and are used for tax purposes as they have no implication in financial reporting. This property can serve either personal or business purposes. Listed property such as automobiles,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Holding Period?Holding Period is the amount of time that the purchaser of property is the record owner of that property. The holding period does not necessarily require physical position. This time period is significant as it affects tax liability for...
