taxation

cigarette

For the purposes of taxation and FDA regulation, a cigarette is defined in 26 U.S. Code § 5702 as

“any roll of tobacco wrapped in paper or in any substance not containing tobacco, and any roll of tobacco wrapped in any...

Cohan rule is a that has roots in the common law. Under the Cohan rule taxpayers, when unable to produce records of actual expenditures, may rely on reasonable estimates provided there is some factual basis for it. The rule allows taxpayers...

complex trust

A complex trust is one that does not fulfill the IRS conditions of a simple trust. The expression "complex" refers to the trustee's discretion rather than the trust's provisions being more complex. A complex trust must engage in at least one...

constructive receipt of income

Constructive receipt of income is a tax term which determines when a cash-basis taxpayer has received income. Constructive receipt of income occurs when a party obtains income that is not yet physically received but has been credited to the...

contribution

Contribution is an important term in the fields of business and tort law.

Tort Law

In the field of tort law, contribution refers to an action a defendant may bring in a joint and several liability jurisdiction to recover...

cost basis

Also called tax basis, cost basis is the original cost of acquiring a property (usually its purchase price plus any commissions or fees), for tax purposes. It is primarily used for computing capital gain or loss from the transfer of property...

credit shelter trust

Credit shelter trust (CST) (also called an AB trust or a bypass 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...

death taxes

“Death taxes” is a pejorative term used to refer to taxes imposed on an individual’s property after their death. There are two specific kinds of “death taxes:” estate taxes and inheritance taxes. An estate tax refers to a tax on a decedent’s...

deductible business expense

Deductible business expense is a very broad category of deductions allowed for businesses because the Internal Revenue Service (IRS) tries to tax business profits, not revenue. Deductible business expenses has been given a broad definition...

deduction

Deduction in tax law (referred to as a tax deductible) means an item or expense that can reduce the taxes a person owes in a given year. A deductible item is subtracted from the total taxable income which can substantially reduce taxes owed...