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Tax Glossary
What Is the “QBI Phaseout”?
The QBI phaseout is a structural tax mechanism that gradually reduces or restricts the 20% Qualified Business Income (QBI) deduction...
Tax Glossary
What Is the QBI Component?
The QBI component is a foundational element used to calculate the Qualified Business Income (QBI) deduction, which allows eligible self-employed...
Tax Glossary
What Is Publicly Traded Partnership Income?
Publicly traded partnership income refers to the net profits, gains, deductions, and losses passed through to investors who own shares...
Tax Glossary
What Is the PTP Income Component?
The PTP income component is a specific part of the Qualified Business Income (QBI) deduction calculation that allows investors to...
Tax Glossary
What Is “Physical presence test”?
The physical presence test is a mechanical, day-counting standard used by the IRS to determine whether a U.S. citizen or...
Tax Glossary
What Is “Personal holding company tax”?
The personal holding company (PHC) tax is a 20% penalty tax imposed by the IRS on certain closely held C...
Tax Glossary
What Is a “Partnership representative”?
A Partnership Representative is the designated person or entity legally authorized to communicate with the IRS on behalf of a...
Tax Glossary
What Are “Partnership Audit Rules”?
Partnership audit rules are the specific procedures the IRS uses to examine the tax returns of business partnerships. Under the...
Tax Glossary
What Is “Partner’s share of liabilities”?
A partner’s share of liabilities represents the portion of a partnership’s debts that is assigned to an individual partner for...
Tax Glossary
What Is a One-Participant 401(k)?
A One-Participant 401(k) is a traditional 401(k) retirement plan designed exclusively for self-employed individuals and business owners who have no...