The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

Category: Tax Law

LLC Tax Benefits: A Legal Guide

Registering your business as a limited liability company (LLC) is a relatively simple and inexpensive process. Along with protecting you from personal liability, registering your business as an LLC can help it

How to Avoid Double Taxation with Form 2553

For entrepreneurs who are incorporating their business, taxation will likely be a major issue. While many business owners may not have heard of IRS Form 2553, this form could be the key

How Far Back Can You File Taxes?

No one likes doing taxes. Sometimes it seems like such a chore that a tax return never gets filed. The reasons for this are many. Maybe you know you’re going to owe,

Are Life Insurance Benefits Taxable?

Simply stated, single lump-sum death benefits received from a life insurance policy that was not owned by the deceased is not taxable. One spouse can own a policy that bequeaths death benefits

Is The Interest On A Savings Account Taxable?

With a few exceptions, the interest earned on savings accounts is taxable, both to the Federal and State governments. If the savings account is a tax deferred IRA (Individual Retirement Account), the

What Does A Tax Write-Off Mean?

Governments recognize that businesses create the employment, along with the essential goods and services for the community. At times, an individual or company can accomplish a goal more efficiently than a government

Definition of a Dependent for Tax Purposes

In the United States, the Internal Revenue Service (IRS) treats dependents as exemption credits that can be claimed on an annual tax return. This is a significant exception credit that can reduce

How to Get an ITIN in the U.S.

In the United States, taxpayers are identified by unique numbers. For most individuals who are compensated on a wage or salary basis, the numbers assigned to them by the Social Security Administration

How Do Inheritance Tax Laws Work?

The loss of a loved one often leaves individuals with high emotions and a series of difficult choices. From handling any medical bills to managing funeral services, death is painful in more

Filing Form 1041 For Estate Tax

The trustee (or executor) of an estate is responsible for filing Form 1041 for estate tax. It is important to note the difference with an individual beneficiary who must also file estate

Is Inheritance Taxable?

There are many types of inheritance. You can inherit cash, land, vehicles, stocks, money that was saved in a retirement account, rental property, a business, equipment, a payout from a life insurance

What Does 414H On My W-2 Forms Mean?

A W-2 statement is confusing for even the most financially savvy individuals. During tax time, employees must pay attention to these financial statements even for those who are hiring tax preparers to

How To Reduce Capital Gains Tax In Canada

Capital gains are defined as any profit or income you received from selling property or an investment. Capital gains are often taxed at a separate rate from income received from working and

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