by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is an Excess Accumulation Penalty?Excess accumulation penalty is a penalty that the Internal Revenue Service imposes on the owner of a retirement account or beneficiary when they fail to withdraw the minimum amount from the retirement account due for a year....
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Bilateral Tax Agreement?A bilateral tax agreement is an agreement between two tax jurisdictions such as municipalities, states, or countries to address the problem of double taxation. When two tax jurisdictions agree to reduce conflicts arising from...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the At-Risk Rule?The at-risk rule is a rule used in taxation to prohibit an investor from claiming or deducting more losses than have actually incurred. In the tax law, only the actual amount of risks and losses is deductible or can be claimed by an investor....
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Border Adjustment Tax?Border adjustment tax is a value-added tax charged on imported goods while exported goods are exempted. This tax can also be referred to as a border-adjusted tax, destination tax or border tax adjustment. This tax is also known as a...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Ordinary Income?An ordinary income is a pretax income earned by individuals and organizations which is taxable using ordinary rates. Examples of ordinary income are salaries, wages, interests earned on bonds, tips, commissions and other forms of income...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Pigovian Tax?A Pigovian tax, also spelled “Pigouvian”, is a tax on economic activity generating negative external charges that are borne by unrelated third parties and which does not reflect costs caused by negative externalities in the final...
