Bypass trust (also called an AB trust or a credit shelter trust) is a tool used by well-off married individuals to legally maximize their estate tax exemptions.
The strategy involves creating two separate trusts after one...
taxation
C corporation
A C corporation is any corporation that does not qualify or elect to be an S corporation under the Internal Revenue Code. A C corporation is a legal structure for a corporation where the company’s assets are separate from the owners’ assets....
capital gains
Capital gains refers to profits gained from the sale of capital assets. Almost everything someone owns and uses for personal or investment purposes is a capital asset. This includes a home, personal-use items like household furnishings,...
carryback
Carryback in tax accounting refers to computing the current year's taxes, profits & losses, deductions, etc. and subsequently revising a previous year’s filed tax return to reduce some amount of tax liability. (See also: carryover)
...carryover
Carryover is an accounting method by which the deductions and credits of a taxable year that are either not used in that year, or could not be considered entirely in that year, are then applied to reduce the tax liability of later/subsequent...
carryover basis
Carryover basis is a type of basis used when calculating the taxes of a gift recipient. Taxes based on capital gains require looking at the change in value of an asset over time, usually looking at the purchase price. However, for individuals...
casualty
Casualty can refer to both an unforeseen accident or disaster, as well as the resulting harm from said accident or disaster. Whether people, places, or things, anything can be considered a casualty of a certain harm. 26 U.S. Code § 165...
casualty loss
Casualty loss is limited to loss caused by some sudden, unexpected, and external force such as fire, storm, shipwreck, or similar event or accident. According to the Internal Revenue Code, a “personal casualty loss” means any losses of...
certified public accountant (CPA)
A certified public accountant (CPA) is an accounting professional who has met all the requirements to earn a CPA license from the State’s Board of Accountancy (SBA). The main difference between an accountant and CPAs is that CPAs may perform...
charitable contribution
Charitable contributions are donations of money or other resources to a 501(c)(3) charitable organization such as environmental advocacy groups or food banks. The key characteristic of these contributions is that they can be deducted from an...