by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Property Tax?Property tax refers to a tax levied on real estate property by the local government authority where the property is domicile. It is an ad-valorem tax that a property owner pays to the local government, this tax is assessed based on the value of...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is the Innocent-Spouse Rule?In the United States, the innocent spouse rule is a provision that grants a spouse relief from penalties of improperly reported tax returns of their spouse. If a spouse is guilty of underpayment of taxes of files tax returns...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Personal Exemption?A personal exemption refers to the amount of money that a single taxpayer can claim as a tax deduction, this deduction is claimed on personal income and federal income tax. The amount an individual can deduct under personal exemption is...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is Phantom Income?Phantom income, or phantom revenue, refers to money, income, or investment gain that an individual is yet to receive but is still subjected to taxes by the Internal Revenue Service. Such income poses a lot of problems for the taxpayers because...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What is a Passive Activity?Passive activity refers to the activity where a taxpayer doesn’t take part materially in the tax year. According to the Internal Revenue Service, passive activity is of two types. The first one includes commercial or business activity...
by TheBusinessProfessor | Feb 23, 2025 | Business Taxation
What are Passive Activity Loss Rules?Internal Revenue Service, or IRS sets passive activity loss rules so as to restrict taxpayers from using passive losses for offsetting income sources. These rules don’t allow investors to utilize losses from activities...
