by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What are Accumulated Earnings, Profits, and Taxes?Accumulated earnings and profits (E&P), are the profits retained by a company after it pays dividends to stockholders. It measures the ability of a company to pay cash distributions. E&P is an accounting term...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Accelerated Amortization?The recalculation of an amortization schedule after a borrower pays in advance is entitled accelerated amortization. Accelerated amortization often happens with mortgage payments. This amortizing method allows borrowers to pay off the...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Non-Qualified Deferred Compensation?Non-qualified deferred compensation (NQDC) is a type of retirement contribution that is earned by the employee but not yet paid by the employer. It is not counted in taxable income, as the compensation (monetary or...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Regulation M?Regulation M allows regulated investment companies to avoid double taxation by passing taxes from capital gains, dividends, and interest distributions onto individual investors. It is an Internal Revenue Service Regulation applied to all...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Rabbi Trust?In the United States, the rabbi trust is a non-qualified, deferred compensation arrangement created by employers for their employees. The first Internal Revenue Service Letter ruling approved the use of this type of trust involved a Rabbi; thus,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Depreciation Recapture?Depreciation Recapture is a procedure by the Internal Revenue Service (IRS) to collect taxes on property that has been depreciated and is later sold for a gain. More specifically, it requires the businesses to report the gain realized...
