by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Consumption Tax?A consumption tax refers to a tax, levy or tariff imposed on the purchase of goods and services. Consumption taxes are money or taxes that individuals pay on consumption, examples of such taxes are sales taxes, tariffs, value-added taxes,...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Boot for Tax?In business, boot refers to a situation in the exchange market whereby an item, property or money is added to an exchange to make the value of traded goods exact. When cash is added to an exchange to equate the value of the traded goods, it is...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Physical-Presence Test?In the United States, the Internal Revenue Service (IRS) find out whether a taxpayer is eligible for the foreign earned income exclusion using the physical presence test. The physical presence test is often done for taxpayers who are...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Return of Capital?Return of capital refers to a return that an investor receives of the amount invested, and is excluded from the taxable income category. It takes place when an investor gets a percentage of his or her actual investment, and such proceeds are...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Qualified Dividend?A qualified dividend refers to a dividend covered under capital gains tax rates that are less as compared to the income tax rates on dividends. In order to be eligible for the highest tax rates of 0%, 15%, or 20% that are applicable for...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Material Participation Test?Material participation tests refer to a criterion set by the Internal Revenue Service (IRS) used to evaluate whether or not a business is a passive activity. The activity may include something like a business, trade, or any...
